200 moving average as Trend Line Strategy - Page 11
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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. #101
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    The 200 moving average is one of the best indicator that we can use for so many things in the forex market because different traders believe that it is the strongest indicator that can be depended on on confirmation of so many things. My personal way of using it is on the higher time frames such as the H4 and the daily time frames to generate the direction of the market for me before i follow the market. But your system of using it here as a trend line is just wonderful and very creative because i never saw it like this before.

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  3. #102
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    There are different indicators for trading and understanding the market, but in terms of trend line in a dynamic manner, I have discovered that the 200 exponential moving Average works like charm, it is profitable if we want to trade with patience, where the challenges would start happening is where we don't understand how to make our entries and even the exit.

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  4. #103
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    I think that you have just brought out one of the many beautiful things that we can use the 200 moving average to achieve in trading the market because a lot of traders do use this wonderful indicator to achieve so many things in the market.Using it as a form of trend line is terrific and beautiful. There is no doubt about the power of the 200 moving average in achieving some very vital things about the forex market.

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  5. #104
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    200 moving average is good for for the trader and he can be able to trade well with it but he needs to know how to trade successfully with it to be able to make some money from the market, the trader should know also how to determine the entry positions to make easy money and avoid risking of his account and so he can be able to make consistent profits.

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  6. #105
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    200 period moving average is way too slow to show any kind of trend. You can probably use it for some kind of support or resistance when a trend is followed by a wild range, but that's it. If you attempt trading a trend based on it you'll most probably enter after the trend is half way to its end.

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    Wow. Much Forex. So Monies. Very Opportunity.Many Trade. So Amazed. Wow.

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