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The MIEMA trading strategy is a universal system that can be applied to any trading asset on the H1 or H4 interval. It is based on the readings of two technical indicators Mass Index and EMA. These indicators are available for download in the Indicators section of our website.
Indicator settings.
Mass Index indicator with standard values 9, 9, 25.
Moving Average indicator with a value of 10 for the Period parameter and 5 for the Shift parameter. MA method is exponential.
Conditions for opening long positions.
1. The line of the Mass Index indicator crosses the 26.5 level and is located in the middle between the 26.5 and 27 levels.
2. The current price at this time is above the moving average level and the body of the current candlestick does not touch the moving average line.
3. The previous two H1 candles are bullish.
Under these conditions, a buy trade is opened. After opening a trade, you should wait for the H1 candlestick to close and set stop loss and take profit based on its size. Stoploss should be set at the distance of the closed candlestick size from the price. If, for example, the candlestick size from Low to High is 336 points, then the stop loss is placed at a distance of 336 points from the opening price of the trade. Take profit is equal to two candle sizes. In the given example, the take profit is set at a distance of 672 points from the trade opening price.
Conditions for opening short positions.
The signals to open short positions in this system are the same as when opening long ones.
1. The line of the Mass Index indicator crosses the level 26.5 and is located in the middle between the levels 26.5 and 27.
2. The current price at this time is below the moving average level and the body of the current candlestick does not touch the moving average line.
3. The previous two H1 candles are bearish candles.
Stoploss and takeprofit are also set in the ratio of 2 to 1 and depend on the size of the candlestick on which the deal was made.
Conclusion
Like most H1 strategies, this strategy generates a small number of trades on each trading instrument. This is perhaps the biggest drawback of this strategy. It should also be noted that when using it, it is especially important to observe money management. We recommend using small volumes of positions when working with this strategy, since according to its rules, stop loss is placed only after the H1 candle closes. Use a safety stop loss before the candlestick on which the trade was executed closes and you know its size.
