Last Updated on March 14, 2025 by Arif Chowdhury
Ever find yourself staring at charts, wondering how to spot those explosive moves in the Forex market?
Trust me, I’ve been there.
As a seasoned Forex trader since 2015, I’ve navigated through countless strategies, only to land on the 21 EMA + Squeeze Momentum Indicator strategy.
Why this strategy?
Because it’s built for action.
Let’s break it down and see how you can harness its power.
Understanding the 21 EMA
The 21 Exponential Moving Average (EMA) is a fancy term for a tool that helps us gauge the market’s trend.
Here’s why it matters:
- Trend Direction: It helps you identify whether the market is bullish or bearish.
- Dynamic Support/Resistance: The 21 EMA can act as a support or resistance level.
- Smooth Data: It reduces the noise in price data, making it easier to spot trends.
When the price is above the 21 EMA, we’re generally in an uptrend. When it’s below, it’s a downtrend. Simple, right?
The Squeeze Momentum Indicator
Now, let’s throw in the Squeeze Momentum Indicator.
This baby measures volatility and potential breakout points.
Here’s how it works:
- Squeeze: When the market is quiet, the indicator shows a squeeze. This means the price is coiling up, ready to explode.
- Momentum: As the squeeze releases, you’ll see momentum bars indicating the strength of the breakout.
Combining these two tools gives you a powerful edge.
How to Use the Strategy
Now that we have our tools, let’s put them to work.
- Identify the Trend:
- Check if the price is above or below the 21 EMA.
- If it’s above, look for buying opportunities. If below, look for selling.
- Look for the Squeeze:
- Use the Squeeze Momentum Indicator to spot periods of low volatility.
- This is where the magic happens.
- Wait for the Breakout:
- Watch for the bars on the Squeeze Momentum Indicator to turn green (buy) or red (sell).
- This signals the launchpad for your trade.
- Set Your Stops and Targets:
- Always have a stop-loss in place.
- Aim for a profit target that aligns with the market’s volatility.
Why This Works
Statistically, traders using moving averages can enhance their win rates. Research shows that using a combination of indicators can improve profitability by up to 15%.
That’s not just a number; it’s a game changer.
My Secret Weapon: The 16 Trading Bots
While this strategy is solid, I’ve taken it a step further.
My exceptional portfolio comprises 16 diverse algorithms across four major currency pairs: EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Each pair has 3-4 bots, internally diversified.
This setup minimizes correlated losses and enhances profitability.
Imagine having 200-350 pips on your side, with bots that are backtested over 20 years.
These bots also utilize the 21 EMA + Squeeze Momentum strategy among other methods.
And the best part?
You can access this entire EA portfolio for FREE.
Check it out here: My 16 Trading Bots Portfolio.
The Bottom Line
The 21 EMA + Squeeze Momentum Indicator strategy isn’t just another trading tactic.
It’s a robust framework that can pave the way for catching those explosive moves.
But remember, success in Forex requires the right tools and brokers.
To maximize your trading experience, consider partnering with the best.
I’ve tested and vetted some of the top brokers out there.
Don’t settle for less.
Check them out here: Most Trusted Forex Brokers.
Final Thoughts
Trading is a journey filled with ups and downs.
Using the 21 EMA + Squeeze Momentum Indicator strategy, along with my comprehensive trading bots, can make a significant difference in your trading success.
Stay sharp, keep learning, and let’s catch those explosive moves together!