Moving average crossovers are a common way traders can use Moving Averages. A trader might consider buying when the shorter-term 50-day SMA crosses above the 200-day SMA and contrastly, a trader might consider selling when the 50-day SMA crosses below the 200-day SMA. P 500, both potential buy signals would have which moving averages to use in forex extremely profitable, but the one potential sell signal would have caused a small loss. Keep in mind, that the 50-day, 200-day Simple Moving Average crossover is a very long-term strategy.
For those traders that want more confirmation when they use Moving Average crossovers, the 3 Simple Moving Average crossover technique might be used. SMA crossover technique, not a three SMA technique. A trader might consider a money management technique of buying a half size when the quick SMA crosses over the next quickest SMA and then enter the other half when the quick SMA crosses over the slower SMA. Instead of halves, buy or sell one-third of a position when the quick SMA crosses over the next quickest SMA, another third when the quick SMA crosses over the slow SMA, and the last third when the second quickest SMA crosses over the slow SMA. Moving Average crossovers are often viewed tools by traders. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance.
Download Indicators,Forex systems,Expert Advisors,Trading Strategies for free. Recommended time frame H1 and above. You might need to combine with other indicators to confirm each other for better result. And I think it will be the best on Daily chart.