The trading strategies I have been sharing lately has been quite popular and many have been asking for more so, I am going to share a moving average strategy with a video.
This strategy is from Forex Strategy Secrets Revealed, this excellent website by Edward Revy has many great strategies he shares from this website I just discovered.
*Before trading any strategy make sure you test it first in a demo account and then use strict money management to ensure that you are going to be a profitable trader.
Setup a 15 minute chart with:
Entry: when the 10 EMA crosses the 25 and the 50 enter in the direction of the move. Place your order as soon as the price crosses but wait until the next candle opens this will help you to avoid false trades.
15 Min Chart
Exit: It is Recommended when the 10 EMA touches the 25 EMA. However I use a trailing stop because I don’t like to give up any profits and I am not that worried if I miss a few pips in the move.
The advantage of a moving average strategy is that it works in a trending market only and when the market is consolidating you will have to be patient until a strong price move is occuring.
Mondays Trade Setup
On the 4hr chart you can see that we have an uptrend forming and the Eur/Usd is about to bounce off of the bottom trend line. So if we combine that with the moving average strategy we should be able to enter long on Monday when we get the bounce off of the bottom trend line.
If we have an opportunity to go long look for a target of 1.4300 and then 1.4433.
4 hr chart
Here is what we will be looking for with the moving average crossover on the 15 minute chart.
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