One of the simplest trading strategies for newbies
The moving average is of great importance to the forex trader when he wants to know the face of the trend. One good thing about the moving average is that new traders don't find it difficult to understand. Simple, if your prices is above the moving average, it suggests the trend is bullish as prices could rise further so you could buy; and when the moving average is above the price,the trend is bearish and prices tend to fall down and it is best you sell.
The Moving Average trading strategy is one of the simplest and it is very easy for beginners. Every new trader needs to know how to use this indicator. There are two ways it can be used. However, note that this strategy can only bring you little profit. Notwithstanding, you need to start small and work your way up. So do not ignore trading on MA. It is easy to use and gives clear trading signals.
You can use a Demo account for testing. As for me, I prefer a Live account. When testing a new strategy, I just open a $5 Micro account with Profiforex. This gives you $10 = 1000cents plus 1:500 leverage, which is enough to do some practice Live. It has its advantages.
The First Strategy on Moving Average
Insert the Moving Average to your Chart (Period 30). Every other parameter remain the same
When the price is higher than the MV, it is a bullish trend.
When the Price is lower than the MV, it is a bearish trend.
Signal
The signal to buy occurs when the price crosses the Moving average from the bottom upward
The signal to buy occurs when the price crosses the Moving average from the top downward.
You can learn how to do this effectively with a practical video
Trading On Moving Average Tutor
The Second Strategy on Moving Average
The one requires two moving average with a different period.
Insert the first moving Average (Period 50). Other settings remain the same
Insert the second moving Average (Period 15) choose another color. Other settings remain the same
Signal
The Signal to buy occurs when the moving average with a shorter averaging period crosses the other with a longer averaging period from the bottom upward. If the shorter MV is crossing the longer MV downward, we place a sell order.
Instead of the price line crossing the long term moving period, we use the short term moving average.
Most likely you would need a practical demonstration on how to use this strategyI think I am more comfortable with trading the signals gotten from the crossovers of the two moving averages. At least I think it could be more accurate when you buy when the moving average with the shorter period in its MT4 setting crosses the moving average with the longer period in the MT4 setting bottom up. If I want it to be more accurate I could add moving average convergence divergence indicator. The MACD histogram is very helpful in this.
I think I am more comfortable with trading the signals gotten from the crossovers of the two moving averages. At least I think it could be more accurate when you buy when the moving average with the shorter period in its MT4 setting crosses the moving average with the longer period in the MT4 setting bottom up. If I want it to be more accurate I could add moving average convergence divergence indicator. The MACD histogram is very helpful in this.
Gardine
Bare in mind that MACD is a cross of two EMAs too - you could end up duplicating moving averages crosses
I understand you mladen but don't forget that the MACD also brings in the signal line, which is a further filter to signals generated from possible crossovers. Sometimes I even use moving averages to measure the long term strength of trend having an idea of whether it could reverse.
Trading Moving averages is not difficult for new traders to learn. Get on your mt4 platform, add moving average as an indicator on your chart say a H1 chart choose the period of the moving average ( preferably simple). Now watch out, if price moves above the moving average, you may buy at that point. This is just the basics.
Gardine
Bare in mind that MACD is a cross of two EMAs too - you could end up duplicating moving averages crossesThis is not always the case. A strategy I could suggest for you here is to trade the relationship between the nine-period EMA line and the histogram of the MACD. This way, you sell when the histogram drops below the nine-period EMA line.
Really? MA crossing is a strategy? Maybe if you inverse the 'signals'. Fact: around 95% of newbie traders fail. You can ask why. There are no statistics which strategy they mostly use, but I would guess MA crossing is the main reason, before gambling.
From the old days the strategy #1 contained SMA20, MACD and PSAR. These people say that it could be that your system doesn't work anymore out of the sudden. I would say the sytem isn't robust then. The trends aren't that smooth anymore today and it may seem to these traders that forex is broken now. No, it isn't at all. There are more traders in the market, the pullbacks are quicker so it may appear to these people that the big banks build bulls traps and bears traps (yes, they do for adept traders), but in fact who build these traps was you and noone else.
Really? MA crossing is a strategy? Maybe if you inverse the 'signals'. Fact: around 95% of newbie traders fail. You can ask why. There are no statistics which strategy they mostly use, but I would guess MA crossing is the main reason, before gambling. .
Of course no strategy is 100% watertight! No strategy can win always; it is about working with the one that gives you more profits and less loses. I think one bigger reason why new traders fail is that they work with system they don't understand. It is not the plenty number of indicators that integrated in a system that makes it profitable. I can assure you that a simple system of moving average if well understood can fetch you some good pips.m
Here is the result for today based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Average
Signal:Buy
Currency pair: EURUSD
Amount traded:1k
Opening price:1.09717
Closing price:1.09812
Pips gained as profit:9.5
Here is the result for today based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Average
Signal:Buy
Currency pair: EURUSD
Amount traded:1k
Opening price:1.09717
Closing price:1.09812
Pips gained as profit:9.5Any long term results?
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The Moving Average trading strategy is one of the simplest and it is very easy for beginners. Every new trader needs to know how to use this indicator. There are two ways it can be used. However, note that this strategy can only bring you little profit. Notwithstanding, you need to start small and work your way up. So do not ignore trading on MA. It is easy to use and gives clear trading signals.
You can use a Demo account for testing. As for me, I prefer a Live account. When testing a new strategy, I just open a $5 Micro account with Profiforex. This gives you $10 = 1000cents plus 1:500 leverage, which is enough to do some practice Live. It has its advantages.
The First Strategy on Moving Average
Insert the Moving Average to your Chart (Period 30). Every other parameter remain the same
When the price is higher than the MV, it is a bullish trend.
When the Price is lower than the MV, it is a bearish trend.
Signal
The signal to buy occurs when the price crosses the Moving average from the bottom upward
The signal to buy occurs when the price crosses the Moving average from the top downward.
You can learn how to do this effectively with a practical video
Trading On Moving Average Tutor
The Second Strategy on Moving Average
The one requires two moving average with a different period.
Insert the first moving Average (Period 50). Other settings remain the same
Insert the second moving Average (Period 15) choose another color. Other settings remain the same
Signal
The Signal to buy occurs when the moving average with a shorter averaging period crosses the other with a longer averaging period from the bottom upward. If the shorter MV is crossing the longer MV downward, we place a sell order.
Instead of the price line crossing the long term moving period, we use the short term moving average.
Most likely you would need a practical demonstration on how to use this strategy