Who’s online There are currently 28 users online. Submitted by Edward Revy on February 28, 2007 – 13:07. Trading systems based on fast moving averages are quite easy to follow. Let’s take a look at this simple system. Time frame chart: 1 hour or 15 minute chart.
Indicators: 10 EMA, 25 EMA, 50 EMA. 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. Exit rules: option1: exit when 10 EMA crosses 25 EMA again. Advantages: it is easy to use, and it gives very good results when the market is trending, during big price break-outs and big price moves. Disadvantages: 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.
Submitted by Edward Revy on November 30, 2009 – 13:48. Comments for this strategy are now closed. To continue discussion, please use our Forex Forum, where you can create a new discussion topic. Submitted by Edward Revy on November 30, 2009 – 02:08. You can add Bill Williams fractals indicator to help you with tops and bottoms. We should not move our initial stop loss till we see the “checkpoint” level being surpassed by the price. Once the checkpoint is passed, move SL to the latest fractal.
Submitted by Buddy on November 17, 2009 – 21:41. Where shall I place the STOP LOSS? Submitted by Edward Revy on November 10, 2009 – 13:40. The strategy will fail only when there is a truly narrow range which allows Moving averages to cross multiple times. You should be able to see this range far ahead and disregard MA crosses till price breaks out of the range.
Another trouble this strategy can encounter is quickly changing trends – a wide and violent sideways channel. In such cases it is better to switch to a higher time frame while on the smaller one use use RSI or Stochastic or CCI to anticipate tops and bottoms. Submitted by User on October 5, 2009 – 21:23. Submitted by User on October 4, 2009 – 18:22. You can tell that the currency is trending sideways when you look at its history , and check where you are now compare to the past .
If you above – the currency pair is trending up . Submitted by User on September 13, 2009 – 10:06. Submitted by Martha on September 3, 2009 – 14:14. If you read Williams’ books, he uses fractals with his Alligator to filter trades. Submitted by Antonio on September 1, 2009 – 12:07.