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  1. #1
    Super Moderator RoboForex Trader's Avatar
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    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.

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  2. #11
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    Thanks for the nice and clear description . I like and would like to trade with basic strategy and two MA Crossing. Because it is a very good strategy . It is helpful when the market goes with strong trending .It has weakness also. Because it is no suitable at the market's sideways position .It is better for MA crossover strategy which is suitable for trending market.We should put resistance and support levels when 10 EMA goes through 25 EMA and 50 EMA .The combination of fibonacci or RnS can be used to determine the target. .
    Ay last the strategy is simple and powerful.

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  3. #12
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    I learned this kind of trading strategy the very first day that i started the practical forex trading, but you will need to work well before this can yield you a good result, the things is that it is better of if they are two moving averages , rather than the three that they are, if you want to use the three conveniently, you will have to wait for proper breakout of the two lines, and this requires time, and might lag you as well.

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  4. #13
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    I think using support and resistance level, moving average calculation period, money management system is basic trading strategy. it is very important for a trader to have knowledge on basic trading knowledge to use basic trading strategy properly. Because, To use money management system properly you must have good knowledge on it, otherwise you not will able to use it. So learn first then use your knowledge and make your trading strategy more powerful.

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  5. #14
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    well, you can draw the line manually by yourself so i think that it's not right. As for the S1 and R1 are quite important but even so, what's really important is the data in the market since that's the one that will determine the trend after all. Surely you can make a good strategy and money management from there but it's only to reduce the big loss.

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  6. #15
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    Quote Originally Posted by Khimi234 View Post
    Yeah friends you are saying right the crossover strategy of moving average indicator really works for everyone its a very good strategy for everyone from where we can earn good pips in the market and we can make good trades on right time but in sideways market moving average not work well I think that's bad about it
    Yes. Moving average especially MA crossover suitable for market trending (uptrend or downtrend). MA give false signals in a sideways market. I suggest to put patterns, support and resistance levels that moving average for better results. It will reduce false signals when the market is sideways

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  7. #16
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    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.1hr and 4hr. We must have to follow and we can use any currency, but Eur/usd would be preferable.

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  8. #17
    Rookie mohabbat's Avatar
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    well moderator .it is good analysis to us. so I respect it .but I think 50MA and 20 MA crossing level is so good and very powerful for starting any position. but it is my personal view. and I hope maximum time we can make profit easily by using this method. so it is better .but when market move from S/R then any MA or SMA not work accurately.

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  9. #18
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    Well, our respective s-mod shared a nice strategy with 3 crossing EMA here. Every trader can practice it in demo account or cent account to test drive it. I think EMA Crossing will more powerful when the market become strong trending then we can take more advantage there.

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  10. #19
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    For me, basic trading strategy which must be known by all traders are determining support and resistance point. It's not hard to determine support and resistance point because there is formula to determine it but different trader can be different to determine it so you can use formula which can help you to make good consideration and you think that it's profitable for you.

    It's possible to use indicators to help you on making good analysis but not all traders like to use indicator but it's not basic thing to use indicator. Basic thing is using support and resistance point.

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  11. #20
    Rookie Azis Muslim's Avatar
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    I'm using Slow Moving Average Crossover strategy, thanks to you dear Super Moderator. From this strategy I can determine when to open and close my trade. I personally apply this strategy in small time frame from M5 to M15 to open and close my trade, and higher time frame like H1 to do some analysis for long term trade. This strategy works better because I also use a Stochastic Oscillator as a supporting indicator. I use this indicator only to reinforce and support the other indicators.

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