Basic trading strategies
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  1. #1

    Basic trading strategies

    Fast moving averages crossover Forex trading strategy.

    Trading systems based on fast moving averages are referred to systems quite easy to follow. Let's analyze following data of this simple system.
    Within this system you can use any currency pairs. Time frame chart should be 1(one) hour or 15 (fifteen) minute’s. It’s recommended for the following indicators: 10 EMA, 25 EMA, 50 EMA.

    To make this trading system well-done you should comply with the entry rules: when 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).

    There are two variants of exit rules. First one covers an exit when 10 EMA crosses 25 EMA again.

    The second variant necessitate an exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called “touch” has been closed on the opposite side of 50 EMA).

    As other trading systems it also has advantages and disadvantages. We must mark following strong points: it is userfriendly and it gives very good results when the market is trending, during big price break-outs and big price moves.Following disadvantages should be noted also: fast moving average indicator is a follow-up indicator or it is also called a lagging indicator, which means it does not predict future market directions, but rather reflects current situation on the market. This characteristic makes it vulnerable: firstly, because it can change its signals any time, secondly – because need to watch it all the time; and finally, when market trades sideways (no trend) with very little fluctuation in price it can give many false signals, so it is not suggested to use it during such periods.

  2. #2
    Slow moving averages crossover Forex trading strategy

    Current strategy applies the same principles as Fast moving averages crossover Forex trading strategy.

    You should use time frame and currency which respond the best (1 hour, 1 day… or any other). What about indicators- only criteria can be used - it should be multiple of 7: 7 SMA, 14 SMA, 21 SMA. Entry rules for this strategy: When 7 SMA goes through 14 and continues through 21, BUY/SELL in the direction of 7 SMA once price gets through 21 SMA. For eventual success you should use following exit rules: exit when 7 SMA goes back and touches 21 SMA.

    We have to recall there are not perfect trading systems, so again we return to the advantages and disadvantages of current trading system. Marked advantages are: again it is an easy set up and does not require any calculations or other studies. Also it can produce very good results during strong market moves. Eventually, the system can be easily programmed and traded automatically. From the disadvantages we’ve marked the following: System requires periodical monitoring according to a chosen time frame. SMA indicator signal can be confirmed after the current price bar has been fully formed and closed. In other words, when SMA stops changing and the signal is fixed, traders may rely on such information to open a trade.

    From the foregoing it follows that you can easily use this trading strategy, pre-sorting out the simple rules.

  3. #3
    28-100 MA trading Forex trading strategy

    We invite you to take a look at another simple trading strategy that can help with trading to the Forex beginners.

    Indicators are used for this strategy: 100Ema applied to close and 28 smooth moving average applied to close. Time frame: 1hr and 4hr. You can use any currency, but Eur/usd would be preferable.

    Entry terms are following: the 100ema shows the trend, so if we were in a down trend as given by the 100ema and a candle closes above the 100ema, we enter a buy, you would stay in that buy until a candle closes below the 28 and re-entries are made using the 28 once price touches it or closes above it when it has first closed below it. The reverse strategy variant is for a sell trade.

    Another terms you should follow for: stop loss should be 50-60pips for 1hr while take profit should be 70-120pips, stop loss should be 100pips for 4hr while take profit should be 100-500pips.

  4. #4
    Registered user mohamed reda's Avatar
    Join Date
    Aug 2013
    i think the fast EMA is the best way to make our own strategy it is so useful for any Forex trader to trade with a strategy like this strategy .
    also trading with 28 and 100 Ema will be so good strategy for scalping with one and five minutes time frames . and you can use this strategy with trends and with the technical analysis .it nice to see this strategy here .my regards.

  5. #5
    Basic principles Working Strategy. Before information of the Basic principles Working Strategy let us say a few words about some essential ideas of trading and making an investment idea.

  6. #6
    Join Date
    Aug 2013
    Thanks for sharing but these strategies dont work all the times. I would insist newbies to come and learn price action trading strategy if possible. It uses no indicators as experts says that your eyes is the best indicator.

  7. #7
    hi brother that startgy is simple and powerfull so i am use in this stratgy so this startgy all time not b work i am all best startgy use in 1 time so not b best in one startgy ues in trading

  8. #8
    Yes right. MA crossover strategy suitable for trending market (uptrend or downtrend) and not good for a sideways market. I think, we should avoid when 0 EMA, 25 EMA, 50 EMA straight near, it means the market is sideways. We may put resistance and support levels when 10 EMA goes through 25 EMA and 50 EMA and the price breakout to support level possible downtrend is starting.

  9. #9
    Thanks for Strategic and I hope that I find Win strategy including

  10. #10
    Join Date
    Sep 2013
    I like to trade with basic strategy and two MA Crossing is very good when the market going with strong trending, but it have weakness whenever the market sideway. For the combination we can use fibonacci or RnS to determine the target. MA is good for entry point but exit point will a bit difficult if we haven't another combination.

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