I just experimented with a trading method that combines the EMA 34 and 89 lines with Price Action, and I found it to be quite effective. Today, I want to share how to apply it in the most practical way.

First, understand these two indicators clearly. EMA is the Exponential Moving Average, which is more sensitive to recent prices compared to the standard SMA. EMA 34 helps you catch short-term trends, while EMA 89 indicates long-term trends. When these two lines stack up, you can read the market sentiment quite clearly.

Using the EMA 34 and 89 lines is very simple. If EMA 34 is above EMA 89, the market is trending up, so look for buying opportunities. Conversely, if EMA 34 is below EMA 89, the market is trending down, so look for selling opportunities. This helps you avoid trading against the trend.

The next step is to wait for the price to return close to one of these lines. At that point, don’t rush to enter a trade; instead, wait for a Price Action signal to appear. Pin Bar, Inside Bar, or Fakey are the strongest candlestick patterns. For example, in an uptrend, if the price touches EMA 34 and a bullish Pin Bar forms, that’s a strong buy signal.

Regarding trade management, determine your entry point when the candlestick pattern is confirmed near the EMA 34 and 89 lines. Place your stop loss just below the low of the Pin Bar for buy orders or above the high of the Pin Bar for sell orders. Take profit based on a risk/reward ratio like 1:2 or 1:3 to ensure a proper risk/reward ratio.

I usually apply this on EUR/USD and other major currency pairs. When EMA 34 is above EMA 89, and the price returns to EMA 34 forming a bullish Pin Bar, I enter a buy order. Set the stop loss below the Pin Bar’s low and target a 1:3 reward ratio. This method helps me catch upward waves quite effectively.

A few important notes: avoid trading during sideways markets because, at that time, these lines run horizontally and signals are unclear. Use higher timeframes like H4 or D1 because they are less noisy and more reliable. Don’t forget to combine Price Action with the EMA 34 and 89 lines for confirmation of both directions; don’t rely on a single indicator.

Mastering this method requires continuous practice. You need to learn how to identify the trend, find the right candlestick patterns, and most importantly, be patient and wait for clear signals instead of entering trades impulsively. I believe patience is the key to sustainable profitable trading.