Rules for a Short Trade
1. Look for the currency pair to be trading above the 20-period EMA and MACD to be positive.
2. Wait for the price to cross below the 20-period EMA; make sure that MACD is either in the process of crossing from positive to negative or crossed into negative territory no longer than five bars ago.
3. Go short 10 pips below the 20-period EMA.
4. For an aggressive trade, place stop at the swing high on a five-minute chart. For a conservative trade, place the stop 20 pips above 20-period EMA
5. Buy back half of the position at entry minus the amount risked and move the stop on the second half to breakeven.
6. Trail stop by lower of breakeven or 20-period EMA plus 15 pips