200 moving average as Trend Line Strategy - Page 2
Page 2 of 9 FirstFirst 123456 ... LastLast
Results 11 to 20 of 85

Thread: 200 moving average as Trend Line Strategy

  1. #1
    Registered user
    Join Date
    Jul 2017
    Posts
    3,599
    Promo (¢)
    8,085
    Thumbs Up
    Received: 13
    Given: 1

    200 moving average as Trend Line Strategy

    Many people know how to use the trend lines and many others are skeptical because they don't know how to connect the tops or bottom, I have a solution to that with this strategy, it is a price action strategy that works from the practice that I have done. To use this strategy, remove all indicators from your chart and then put the moving average with this setting, 200 is the future to use and then apply it to close, use the exponential for best results.

    There idea is very simple, price will always trend and when we see a breaking above or below the 200 moving average, what we are expecting thereafter is for price to return to it and bounce off, that is exactly how the traditional trend lines works, we cannot trade until we see a touch, many times we are going to experience a false breakout of the 200 moving average and then a pin bar will form a little above it, that pin bar is what will prompt us to enter, stop loss will be below the moving average or above depending upon a bearish or bullish market. Take profit is always a minimum of 2:1 risk reward.

    IIn the charts of EUR AUD, price broke above the 200 moving average in the place I mark with blue, after that it returns to the moving average twice and bounce off, where I market with green, those green zones are where we pull the trigger and put our stop loss right below the moving average.

    Not allowed!

  2. #11
    Registered user
    Join Date
    Jul 2017
    Posts
    3,599
    Promo (¢)
    8,085
    Thumbs Up
    Received: 13
    Given: 1
    Quote Originally Posted by Toyen View Post
    It is never a bad thing for traders to be using the 200MA, i have used 200EMA, 100EMA and 50EMA, they are working as support and resistance, just like the way the trendline is working as support and resistance. If traders wants to use it as their trendline, it will not actually behave perfectly as the trendline will behave, but it will try to work fine for the trader. And when the breakout occur on the MA lines, the trader will know that the direction has changed.
    There is no perfect trend line as it were, I know that this 200 moving average when used for the purposes that the normal trend lines can be used for has its limitations, I want you to think about how dynamic support and resistance works, that is exactly how this 200 exponential moving Average as a trend line works, it does not wait for you to plot it on the charts, rather, it is drawn automatically, that is what makes it different from the trend lines themselves.

    Not allowed!

  3. #12
    Rookie ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    7,262
    Promo (¢)
    5,900
    Thumbs Up
    Received: 43
    Given: 19
    This is not what i know to be the real trendline trading method but with the way i see it on your forex chart, it still makes sense. Forex field can be done the way we wish to do it, but we must first test what we want to use first, that is what will not put us in trouble. But if i should suggest for you, try to use this only on the higher time frames, it will be so frustrating for you when you use 200SMA on lower time frames. I will be testing this strategy along with you too.

    Not allowed!

  4. #13
    Registered user maryrosi's Avatar
    Join Date
    Jul 2017
    Posts
    1,409
    Promo (¢)
    735
    Thumbs Up
    Received: 1
    Given: 1
    like the Moving Average 200 strategy is very popular, because many traders use this strategy, there are weaknesses and also shortcomings with this MA 200 strategy, maybe for scalping or intraday traders, the 200 MA strategy will not match scalping traders, because the 200 MA strategy can be used by traders long time, trading with a long period of time, but if used for scalping trading, it will be very risky.

    Not allowed!

  5. #14
    Registered user
    Join Date
    Jul 2017
    Posts
    3,599
    Promo (¢)
    8,085
    Thumbs Up
    Received: 13
    Given: 1
    Quote Originally Posted by ola4real View Post
    This is not what i know to be the real trendline trading method but with the way i see it on your forex chart, it still makes sense. Forex field can be done the way we wish to do it, but we must first test what we want to use first, that is what will not put us in trouble. But if i should suggest for you, try to use this only on the higher time frames, it will be so frustrating for you when you use 200SMA on lower time frames. I will be testing this strategy along with you too.
    Yes this is not the conventional trend lines as we know it, but in the forex market, we also need to discover something for ourselves, we cannot always stick with what we already know, this is just an additional way to trade the market without having to face the stress plotting the trend lines always, this 200 exponential moving Average just does that for you automatically as price is being adjusted in the charts which is quite good.

    Not allowed!

  6. #15
    Registered user snnaky's Avatar
    Join Date
    Apr 2014
    Posts
    821
    Promo (¢)
    1,155
    Thumbs Up
    Received: 6
    Given: 1
    I fully agree with you in this simple way also ,and i don’t prefer the trade through the indicators never , it follows the price and always make my decision far from the right but use the averages and support and resistance ,this is the most appropriate for me so i agree with you in the idea

    Not allowed!

  7. #16
    Registered user
    Join Date
    Feb 2017
    Posts
    613
    Promo (¢)
    0
    Thumbs Up
    Received: 2
    Given: 0
    200 day moving average is a very good indicator for confirmation of the dominant trend and it is also a very good indicator for the long term traders as it helps them to spot great trading opportunities in the forex market bcs in higher time frames is always working as a support and resistance that can not be broker easly.

    Not allowed!

  8. #17
    Registered user
    Join Date
    May 2017
    Posts
    8,182
    Promo (¢)
    3,100
    Thumbs Up
    Received: 72
    Given: 63
    I know 200 simple moving average, i use it a lot, and it is working like wonders for me. It will show its line on the trading chart, this line is a single line, but i will never agree that this line can be used as trendline, traders should stop confusing other traders. This is a breakout trading strategy of its own kind, it will not slant the way trendline will slant, and 200SMA is moving as the chart proceeds over the time, but trendline is stationary unless the trader draws another one.

    Not allowed!

  9. #18
    Registered user
    Join Date
    Jul 2017
    Posts
    3,279
    Promo (¢)
    2,655
    Thumbs Up
    Received: 6
    Given: 1
    The 200 moving average is a slow moving average that we can not use really for entry,if we are to depend on the 200 moving average before price will get to that level it would be been too late to join the trend,the 200 moving average is mostly use to confirm trend continuation or reversal it can be used as support or resistance.

    Not allowed!

  10. #19
    Rookie
    Join Date
    Mar 2018
    Posts
    2,060
    Promo (¢)
    1,360
    Thumbs Up
    Received: 21
    Given: 14
    Quote Originally Posted by ajagbeolegba View Post
    I know 200 simple moving average, i use it a lot, and it is working like wonders for me. It will show its line on the trading chart, this line is a single line, but i will never agree that this line can be used as trendline, traders should stop confusing other traders. This is a breakout trading strategy of its own kind, it will not slant the way trendline will slant, and 200SMA is moving as the chart proceeds over the time, but trendline is stationary unless the trader draws another one.
    I also use this indicator in trading because this indicator is give use easy success on forex market. 200 MA is basically for trade long term trading methods and to follow the market trend with long term trading methods and also use trend line in this strategy is always give us good and profitable trades.

    Not allowed!

  11. #20
    Registered user
    Join Date
    Jul 2017
    Posts
    3,599
    Promo (¢)
    8,085
    Thumbs Up
    Received: 13
    Given: 1
    Quote Originally Posted by BOSST View Post
    The 200 moving average is a slow moving average that we can not use really for entry,if we are to depend on the 200 moving average before price will get to that level it would be been too late to join the trend,the 200 moving average is mostly use to confirm trend continuation or reversal it can be used as support or resistance.
    This indicator can be used for entry, maybe you use not understood it well that is why you are assuming that it cannot be applied for entry, for anyone that wants to trade the 200 moving average, the basic requirements is to wait for price to come to it and close above it after it is touched before a buy order can be executed thereafter.

    Not allowed!

Page 2 of 9 FirstFirst 123456 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •