FOREX moving average
trading strategy with the intersection of two moving averages
trading strategy with the intersection of two moving averages - a simple system that is based on the intersection of two standard indicators - fast EMA (exponential moving average or exponential moving average) and a slow EMA.
Features Trade Strategy:
* A very simple strategy to use.
* Uses simple indicators.
* Easy to identify stop-loss order.
* Averages inhibit - the delay can be up to 10 bars.
* Not effective during lateral movements in the market.
Preparing to trade in
- Any currency pair and timeframe. Add
- exponential moving average on the chart, place it between a 9 to apply to the closing prices (Close), set the color to red (optional) - it will be fast moving average (FMA).
- Add another exponential moving average on the chart, set its period to 14, apply to the closing prices (Close), set the color to blue (optional) - this will be a slow moving average (SMA).
Buy when the FMA SMA crosses below.
Sell ??when the FMA SMA crosses above.
Stop-loss for long positions established on the lowest level (Low) in the last bar before crossing. For short positions - on the level of the highest rates (High) in the last bar before crossing.
take profit depends on the stop-loss and should not be lower. I recommend setting the take-profit level for a half or two stop-loss.If
to trigger stop-loss or take profit there is a new intersection, close the position.
As seen in the example, the input conditions are pretty clear and properly chosen ratio of TP to the stop-loss, this strategy can be quite lucrative.
Use this strategy at your own risk. Forex-Utility.com not responsible for any damages that may result to you when using any strategy, presented on the site. It is not recommended to use this strategy on a live account, without testing it to start a demo account.