Forex trading strategy #2-a (28-100 MA trading)
Submitted by User on October 25, 2010 - 14:24.
Submitted by Egudu
Hi everyone, here is a simple but cool system, and like I do tell my students, fx is not hard, so don't make it one.
Indicators: 100Ema applied to close and 28 smooth moving average applied to close.
Time frame: 1hr and 4hr
Currency: Any, but i guess Eur/usd would be preferable.
Entry: the 100ema shows the trend. So if we were in a down trend as given by the 100ema and a candle closes above the 100ema, we enter a buy, you would stay in that buy until a candle closes below the 28 and re-entries are made using the 28 once price touches it or closes above it when it has first closed below it. The reverse is for a sell trade.
For 1hr, stop loss should be 50-60pips while take profit should be 70-120pips, for 4hr stop loss should be 100pips while take profit should be 100-500pips.
I hope this makes for you good pips,suggestions and questions are welcome