Resolved Question
Kindly comment on this trading strategy
Could you kindly comment on this trading strategy?
a) SELL entry - when candle close below SMA21, 50 & 200
b) BUY entry - when candle close above SMA21, 50 & 200
conditions:-
i) SELL entry - SMA21 & 50 MUST below SMA200
ii) BUY entry - SMA21 & 50 MUST above SMA200
thanking you in advance.
over 3 years ago
Best Answer - Chosen by Asker
In my opinion, MA crossovers work best with higher time frames (4-Hour and Daily). Putting some other additional filters could also work too to avoid fake outs... You could put a momentum indicator to filter out those buy/sell where in the pair is already in overbought/oversold territory. Oh, and I think it's also important to always draw your support and resistance levels and trend lines no matter what trading strategy you use.
over 3 years ago
Answers (3)
Hey KokBarry! I suggest you check out MeetPips - it's a site where forex traders can post up their trades and strategies. You can get a lot of feedback from other forex traders and can also see how they trade as well. It's great place to learn and develop!
over 3 years ago
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This is a nice strategy for EUR/USD, GBP/USD, AUD/USD, and USD/CAD if you trade it on a daily chart and put your stop loss below the 200 SMA (for long trades) or above the 200 SMA (for short trades).
over 3 years ago
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This particular strategy works best when prices are trending. When the faster SMAs are above the slower ones, it indicates that prices are trending up. In this situation, it is best to buy and hold a position until a sell signal (like bearish crossover, etc) surfaces. Conversely, a downtrend is indicated when the faster SMAs fall below the the slower ones. Of course, you would want to sell a position when this happens.
over 3 years ago
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