Trading Indicators the Correct Way – FxPremiere.com
The Moving Average Trading Strategy Guide
How to use moving average to trade with the trend forex signals
Trading Indicators the Correct Way – I’m sure you’ll agree with me when I say that a downtrend consists of lower highs and lows, right?
But… sometimes you get a higher high in a downtrend, so does it mean the trend is over? Trading Indicators the Correct Way…
“How can I better define an objectively?”
Well, you could use the MA indicator to help you.
Here’s how to trade it…
If the price is above the 200 EMA with a 200 EMA is pointing higher, then the market is in a long-term uptrend
And… if the price is above the 20 EMA with 20 EMA is pointing higher, then the forex market is in a short-term uptrend.
Does it make sense?
You can analyse the strength of a trend by looking at the steepness of the MA.
The steeper the MA, the stronger the trend. And the flatter the MA, the weaker the trend.
Here’s what it shows:
How to use the moving average to identify value on your chart
You’ve probably heard the quote “buy low and sell high”.
But the question is in focus is… how do you define what’s low and high?
Trading Indicators the Correct Way.. so its imperative to use accurate forex signals
This is where the MA indicator can help.
“Which Moving Average should I use?”
There’s no best MA out available to help always..
If you’re trying to trade long-term trends, then the 200 EMA would suit you.
If you’re trying to trade short-term trends, then the 11 EMA would suit you.
Personally, I use the “space” between 20 + 50 EMA to define the value area.
How to use the moving average indicator to better time your entries
What I’m about to share with you will greatly improve your trading entries.
You’ve learned that in a trending market, MA can act as dynamic Support & Resistance which is an area of value to trade from.
The forex market is like a “rubber-band”. It will snap back if it’s stretched too far away from the dynamic SR.
Now you’re thinking…..
“How does this help with my trading entries?”
Well, think about this, Trading Indicators the Correct Way…
If the market “overextended”, then chances are it will pull back towards the MA.
Thus, if you’re looking to enter your trades, you’ll probably get stopped out as the market retraces against you.
How to use moving average indicator to ride massive trends
a fact to show you.
The only way for you to ride a trend is to have no profit targets.
If you have a profit target, what you’re doing is putting a limit on your profits, correct?
How are you going to ride a trend if you limit your profits?
But if you want to ride a trend, then having a profit target is contradiction.
By trailing your stop loss. And the Moving Average indicator allows you to do just that.
You’re probably aware that in a trending market, Moving Average can act as dynamic SR.
And once in a while, it can be respected by the markets for a long period of time 🙂