A trader of Forex can create the simple strategy for trading to take the advantage and also create the opportunities using the few associated indictors or Moving Average. MA is always used as the technical indicator in trading Forex especially for certain periods such as 10, 50, 100 even 200 periods. When you want to be successful in Forex, you need the best Moving Average crossover strategy Forex to help you in making the right moves and decisions.
What is The Best Moving Averag Crossover Strategy Forex You can Use?
Moving Average is used as the trend indicator in Forex trading but it is also used to identify the levels of support and resistance. There are 2 common Moving Averages such as Simple Moving Average or SMA and EMA or Exponential Moving Average. SMA is the average prize of the time period while EMA will give more weight to the recent prices. When you want to be successful in Forex trading, you should understand them all and you need to have the best moving average crossover strategy Forex.
You need to have the strategy that uses EMA since it is the average type designed to give the response faster for the price changes. When you want to use those strategies, you need to know the steps and here are some answers such as:
• You can plot 3 EMA in the forms of 5-period EMA, 20-period EMA and also 50-period EMA on the chart for 15 minutes.
• You can also buy when 5-period EMA will cross from the bottom to the top of 20-period EMA and the price from 5 and 20-period EMA are all over 50 EMA.
• To sell the trade, you can sell when 5-period EMA crosses from the top to the bottom of 20-period EMA and both of the EMAs and their price are below 50-period EMA.
• You may also place the initial order with the stop and loss method below 20-period EMA for buying the trade or around 10 pips of the entry price.
• The optional step is moving the stop-loss method to break even when you know the trade is profitable with 10 pips.
You may consider placing the profit target about 20 pops or you can exit when 5-period falls under the 20-period when long or when 5 moves above 20 if short and it might be the best moving average crossover strategy Forex you can use and you may combine with other strategies.