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    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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    I would like to whether the EMA's also works as a support and resistance depending on the market trend? Like the yellow EMA works as support/resistance 1 (weak), Blue line works as a support/resistance 2 (average) , and RED line works as a support/resistance 3 (strong ). Is it like this?

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    I always try to find simple strategy so i feel that if i know basic strategy then i can find good and simple strategy i found some good strategy point. First of all I understood that i must analysis daily market either i invest or not. Because if i analysis then i can easily understand trend. And i learn some simple indicator for my strategy like moving average and MACD. I also get information about pivot, resistance and support because it helps me in daily strategy. Money management is main part of strategy. These are basic strategy and i make my strategy simple through these point.s

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    Rookie Azis Muslim's Avatar
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    Quote Originally Posted by taharoyal52 View Post
    I would like to whether the EMA's also works as a support and resistance depending on the market trend? Like the yellow EMA works as support/resistance 1 (weak), Blue line works as a support/resistance 2 (average) , and RED line works as a support/resistance 3 (strong ). Is it like this?
    I also think so. However, if the red moving average is below the market price, it means strong support, blue moving average means the average support, and yellow moving average means weak support. Conversely, if the market price has penetrated all the moving average, the function also changes automatically. So, moving average means weak resistance yellow, blue moving average means average resistance, and red moving average means strong resistance. This just my opinion.

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    Quote Originally Posted by Atif View Post
    I always try to find simple strategy so i feel that if i know basic strategy then i can find good and simple strategy i found some good strategy point. First of all I understood that i must analysis daily market either i invest or not. Because if i analysis then i can easily understand trend. And i learn some simple indicator for my strategy like moving average and MACD. I also get information about pivot, resistance and support because it helps me in daily strategy. Money management is main part of strategy. These are basic strategy and i make my strategy simple through these point.s
    It's good idea to find out simple strategy but the most important is not only simple but also profitable strategy. Basic trading strategy is strategy which must be known to all traders in making analysis. Usually basic trading strategy will include knowing pivot point, support and resistance. It is good to place SL, TP and open position when we knew support and resistance point.

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    Registered user dkarev's Avatar
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    Quote Originally Posted by taharoyal52 View Post
    I would like to whether the EMA's also works as a support and resistance depending on the market trend? Like the yellow EMA works as support/resistance 1 (weak), Blue line works as a support/resistance 2 (average) , and RED line works as a support/resistance 3 (strong ). Is it like this?
    Quote Originally Posted by Azis Muslim View Post
    I also think so. However, if the red moving average is below the market price, it means strong support, blue moving average means the average support, and yellow moving average means weak support. Conversely, if the market price has penetrated all the moving average, the function also changes automatically. So, moving average means weak resistance yellow, blue moving average means average resistance, and red moving average means strong resistance. This just my opinion.

    the yellow moving average crossing is just to tell us you where the market is now trending toward and it not to show you any support and resistance,all moving average are just to show where the market might be trending toward,though one can use the help of pivot level to determine where the support and resistance might be but if you are are long term trader you dont even need any support resistance.

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  7. #26
    Rookie Azis Muslim's Avatar
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    Quote Originally Posted by dkarev View Post
    the yellow moving average crossing is just to tell us you where the market is now trending toward and it not to show you any support and resistance,all moving average are just to show where the market might be trending toward,though one can use the help of pivot level to determine where the support and resistance might be but if you are are long term trader you dont even need any support resistance.
    Honestly, I know that already sir. When the yellow moving average crosses down the blue and red moving average, it means the trend will change to bearish and the price will go down. This is strong bearish because all moving averages are above the candlestick. On the contrary, when the yellow moving average crosses up the blue and red moving average, it means that the trend will change to bullish.

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    Intersting strategy, i use sometimes ema 8, 12, 25, 50 and 200 crossing to identify trend. I place stop loss 25 pips after all of this ema is crossing and my take profit is 50 pips. I often use this on eur/usd and gbp/usd, and sometimes filerting with rsi. When rsi is above 50 i consider only long trades, and when rsi is below 50 i consider only short traders. I use this on 1 hour time frame.

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    Yes, these are the basic strategies especially for newbie people because they dont want any knowledge to trade this strategy. They can just setup the indicators and trade when the line crosses. I came across this strategy around 8-9 months back and it was really a good strategy. But further then i got new other strategies and then i left this one. But for newbies, it is the best. Demo practice is needed first .

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  10. #29
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    Quote Originally Posted by taharoyal52 View Post
    Yes, these are the basic strategies especially for newbie people because they dont want any knowledge to trade this strategy. They can just setup the indicators and trade when the line crosses. I came across this strategy around 8-9 months back and it was really a good strategy. But further then i got new other strategies and then i left this one. But for newbies, it is the best. Demo practice is needed first .
    All strategies must be used in demo account first to know its effectiveness when we are using it for long-term so it will be more clear to know its performance in many different condition of market. There are many strategies in internet but not all of those strategies are suitable with us. Some strategies can work well for one trader but it doesn't work well to another. The result of trading is not only depending on strategy but also money management, psychology control and timing to use the strategy itself. More practices will be better for understanding the strategy and its timing.

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  11. #30
    Rookie Azis Muslim's Avatar
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    Quote Originally Posted by andry777 View Post
    All strategies must be used in demo account first to know its effectiveness when we are using it for long-term so it will be more clear to know its performance in many different condition of market. There are many strategies in internet but not all of those strategies are suitable with us. Some strategies can work well for one trader but it doesn't work well to another. The result of trading is not only depending on strategy but also money management, psychology control and timing to use the strategy itself. More practices will be better for understanding the strategy and its timing.
    We must apply the strategies that we want to use in demo account before applying it in real in order to avoid loss in real trade. We must choose carefully which strategy that suits with us or not because if it is not suit with us then it will hard for us to understand and apply it in our trade. Yes sir you're right that not all strategies that shared freely or paid in internet are suitable with us.

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