Who’s online There are currently 3 forex moving average strategy 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 User on September 27, 2007 – 08:56.
Submitted by Edward Revy on September 27, 2007 – 15:48. Forex Moving Averages don’t extend in the future, they can only follow market price. Regarding the best setups, there are as many of them as probably traders trading Forex. The best way to know which setup will work for you is to test it. Experimenting with indicators can be fun!
You can tell when the market starts moving sideways by looking at EMAs: as the inclination disappears, a flat almost horizontal EMA pattern starts to emerge. While the market is trading sideways it does not make any new highs or new lows. You will be able to draw simple channel lines and watch the market trading inside that channel. A break out of the channel will re-establish a trending market mode.
Submitted by User on November 22, 2007 – 16:18. Could you please let me know what does EMA stands for? I know that MA is Moving average, but what does the E mean? Another important unclear issue for this system : Where do I set the stop loss? Submitted by Edward Revy on November 23, 2007 – 04:38. EMA stands for Exponential Moving Average.
It is a fast moving average, where more weight is given to the latest data. If it appears to be too far, then traders should use a fixed stop which would be individual for each case and will depend on a money management and trading approach chosen by a trader. Submitted by User on November 27, 2007 – 09:28. Submitted by Edward Revy on November 29, 2007 – 12:28. You’ll be able to withdraw your profits after you close your open trading positions. To close a position, you can use Exit rules described above.