Moving average trading with candlestick
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Thread: Moving average trading with candlestick

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    Trader Lyon's Avatar
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    Moving average trading with candlestick

    I want to share with us one of my trading concepts which I make use of.

    Time frame: The time frame is important, so to have quality trades, I make use of the daily TF.

    Indicator: Moving average(12)

    Market movement: Trends.

    Pair: Any pairs

    All I have to do is to wait and see a trending market and the moving average point towards the direction and with candles pattern testing the moving average, confirms a good entry for me.

    You can see some examples that happened recently on USDCAD.

    USDCADDaily.png

    Note: Risk management is important in such trade as there is no holygrail concept in forex. And always avoid it on the ranging market. It does not work.

    Most importantly, it is for the patient trader as the market don't trend at all times, but the few times they trend, such concept help you take some couple of profitable trades.


    Test on demo and leave your reply.

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    This is a trend trading and breakout strategy, it is so simple and good for trading. When i load my trading platform newly, i always see a thing like this, that was why i learned it and i saw that it is good strategy when traders can use it only without adding extra indicators to it. It will work with risk to reward of 1:2 successfully, and with any pair truly.

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    Quote Originally Posted by silverlady View Post
    This is a trend trading and breakout strategy, it is so simple and good for trading. When i load my trading platform newly, i always see a thing like this, that was why i learned it and i saw that it is good strategy when traders can use it only without adding extra indicators to it. It will work with risk to reward of 1:2 successfully, and with any pair truly.
    I can not use this trading strategy for my breakout techniques, i can't simply because it is using a low period of moving average to make its trade, this is not a strong support and resistance strategy, only that some traders might be lucky it works at times. The stronger the period of the moving average, the better its reliability to trade breakout strategies.

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    Quote Originally Posted by cozard007 View Post
    I can not use this trading strategy for my breakout techniques, i can't simply because it is using a low period of moving average to make its trade, this is not a strong support and resistance strategy, only that some traders might be lucky it works at times. The stronger the period of the moving average, the better its reliability to trade breakout strategies.
    I know many of the high period trading strategies on the moving average such as 100 SMA and 200EMA, but i do not think they are the only ones that are working. Traders can use the lower ones to do their breakout without issues. What we are relying upon for success not not the strategy alone, good management can be used in addition.

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    Quote Originally Posted by ajagbeolegba View Post
    I know many of the high period trading strategies on the moving average such as 100 SMA and 200EMA, but i do not think they are the only ones that are working. Traders can use the lower ones to do their breakout without issues. What we are relying upon for success not not the strategy alone, good management can be used in addition.
    these are working actually, use some big values on big time frames but for more level support and resistant use some more moving average level, like i am using 30 50 100 values for three lines and all have own importance in trading so use them wisely these are best and really easy to use, i am using and its result is more good then candlestick patterns

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    Quote Originally Posted by cozard007 View Post
    I can not use this trading strategy for my breakout techniques, i can't simply because it is using a low period of moving average to make its trade, this is not a strong support and resistance strategy, only that some traders might be lucky it works at times. The stronger the period of the moving average, the better its reliability to trade breakout strategies.
    The value might be small but take a look at the time frame and see that it actually is been used on the higher time frame, you can see that traders can become successful with just using it. It is simple. Well, expect for traders that are looking for concept that will provide them with often times signals then this one is not for them.

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    Quote Originally Posted by naeem555 View Post
    these are working actually, use some big values on big time frames but for more level support and resistant use some more moving average level, like i am using 30 50 100 values for three lines and all have own importance in trading so use them wisely these are best and really easy to use, i am using and its result is more good then candlestick patterns
    Well, i do not get what you are trying to express clearly, but i am sure that big values of the moving average is best for trading the candlesticks. It is going to be the price action confirmation on the candlesticks that will breakout the big values of the moving average to confirm a signal pattern. The small periods like the one explained on this thread will do so, but its own might be weak.

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    Quote Originally Posted by Lyon View Post
    The value might be small but take a look at the time frame and see that it actually is been used on the higher time frame, you can see that traders can become successful with just using it. It is simple. Well, expect for traders that are looking for concept that will provide them with often times signals then this one is not for them.
    I actually like to trade with higher time frame because it is simple and is more authentic we must work hard and will get stable results , we must have to learn about swing trading and scalping it is all profitable for us until we gain learning properly for profits we should follow it for profits maximization .

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    Quote Originally Posted by zahra2 View Post
    I actually like to trade with higher time frame because it is simple and is more authentic we must work hard and will get stable results , we must have to learn about swing trading and scalping it is all profitable for us until we gain learning properly for profits we should follow it for profits maximization .
    It is the best form of trading there is no doubt about that. I have been able to compare it with other trading time frame and I have thus come to the conclusion that other trading time frame are just a waste of time. The use of the higher time frame makes any strategy function as intended. It is the best actually.

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    It is a good strategy the way i have seen it, it is working on the skills that will not make traders to lose much. Placing the 12 MA on the candlesticks chart will be causing some breakout, and immediately that happens traders should use their tight stop loss that is not more than 9 pips against that direction for safety of that trader if the price comes back.

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