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Thread: 200 moving average as Trend Line Strategy

  1. #1
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    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.

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  2. #61
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    I saw a replica of this trading system under the 1 minute time frame strategy, and i fell in love for it, but here is another beautiful trading system with the use of the 200 moving average as the tend line , and it is simply awesome. The rotation of the trend of the market price back to the 200 moving average is the beauty of this trading system. I just love a simple trading system like this.

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  3. #62
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    200 moving average period as our way of trend line is risky, don't forget that this is always changing, for more accurate information, we have to always use the static style of trend lines, yet I do know that even this style of drawing trend line has its disadvantage as well, the moving average makes trading to be quite dynamic. Trading is really about our discretion in many ways though.

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  4. #63
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    One thing with the 200ema moving average is that it allows you to always know where the market is heading and take the advantages of the main market directions which reduces the rate of the risks associated with the forex market. The key to making use of this trading tool so well is found in your abilities to plot it on a higher time frames such as the one hour time frames and making sure that you take time to learn and master it because in so doing it become an easy means of finding your direction all the time.

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  5. #64
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    Quote Originally Posted by Penuelophir View Post
    One thing with the 200ema moving average is that it allows you to always know where the market is heading and take the advantages of the main market directions which reduces the rate of the risks associated with the forex market. The key to making use of this trading tool so well is found in your abilities to plot it on a higher time frames such as the one hour time frames and making sure that you take time to learn and master it because in so doing it become an easy means of finding your direction all the time.
    The secret to trading the moving average is to apply it on the time frame that will not be associated with noise, the 4 hour time frame is what I have considered to be working accurately especially if price has not come back to retest the moving average after the break out, trading the moving average without understanding the market dynamics can be catastrophic too, if you keep trading the moving average using any small tin frame the accuracy drops drastically.

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  6. #65
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    Quote Originally Posted by Leonvic View Post
    200 moving average period as our way of trend line is risky, don't forget that this is always changing, for more accurate information, we have to always use the static style of trend lines, yet I do know that even this style of drawing trend line has its disadvantage as well, the moving average makes trading to be quite dynamic. Trading is really about our discretion in many ways though.
    moving average with 200ema is taking higher time frame to be execute so you need to be follow higher time frame and patience is necessary for a trader because it was happened that market can change its movements for a few seconds than come back to its initial position so try to be patient and disciplined trader and trend is always give you profit if you know how to be analyse it well.

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  7. #66
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    Quote Originally Posted by mao View Post
    moving average with 200ema is taking higher time frame to be execute so you need to be follow higher time frame and patience is necessary for a trader because it was happened that market can change its movements for a few seconds than come back to its initial position so try to be patient and disciplined trader and trend is always give you profit if you know how to be analyse it well.
    It is a confirmed fact that we need to keep trading higher time frame for the moving average to be very profitable, like you rightly said, the main requirements there is patience, once we can be very patient with the market, anything becomes possible for us, the moving average is always what I know as the best strategy, there are ways that we can use smaller Time frame and still earn, the safety in it is the higher time frame trading.

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  8. #67
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    trading with moving average 200 is and profitable in most cases for the traders that know how to use it and so the trader will be able to maximize the profits he will get if he knows how to choose the good positions of trading and so the trader will be able to make successful and safe trading always, the trader needs to trade with strong chances always.

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  9. #68
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    200 MA is the one of best and an effective price action indicator that is helpful for detect the trend and suitable for following the long time frames methods for all the times so this is one famous strategy in the Forex market and a lot of traders are using it so consistency in earning the profitable trade might be possible through work on this best ever strategy in whole our career .

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  10. #69
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    After going through all the discussions and seeing the power of the 200 moving average period, I have decided to add it to my Ichimoku style of trading, I must say that the combination is quite interesting based on the personal experience that I have gotten so far, it means that trading for me with the Ichimoku indicator now has an extra confirmation which is a good development.

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  11. #70
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    Quote Originally Posted by lucy View Post
    200 MA is the one of best and an effective price action indicator that is helpful for detect the trend and suitable for following the long time frames methods for all the times so this is one famous strategy in the Forex market and a lot of traders are using it so consistency in earning the profitable trade might be possible through work on this best ever strategy in whole our career .
    Trend trading is the best strategy, and with the 200 exponential moving Average this job is made easy because the trend is what we hope to trade, I have been trading this strategy for sometime now, it is not what I will give up soon, the way the 200 exponential moving Average works is very different, it can also be applied as the trend line which is a dynamic form.

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