The Moving Average Crossover Strategy for Forex Trading. It is a simple trading system based on the intersection of two standard indicators — the fast EMA (exponential moving average) and the slow EMA.
Strategy Features:
This strategy is very easy to follow. You can use simple indicators in it. and it is easy to set the stop loss. In additional moving averages are delayed — they can be delayed up to 10 candles. Also this strategy not effective in side market conditions.
Construction of Strategy:
They can work with any currency pair and any time frame.
Add the moving average line to the chart, set the time period at 9, apply the closing price and set the color when red. This will be the quick moving average line you are using in this strategy.
Add another Moving Line to the chart, place the time period at 14, apply on the closing price, select green- This will be the slow moving average line that you are using in this strategy.
When to Entry:
Open a long trade when the moving average line is cut off the slow moving average line from the bottom.
Enter a short deal when the moving average line cuts the slow moving average line from the highest.
When to Exit:
Stop loss orders for long centers must be placed at the bottom of the last trading candle before the intersection appearance. While in short centers they are placed at the top of the last candle before the intersection.
Taking profit must depend on stop loss, and rate between them should not be less than the amount of loss.
If another intersection or cross appears before access to the target, you should be close this trade.
Example:
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