Saturday, September 20, 2008

Strategy #1 (Fast moving averages crossover)


Trading systems based on fast moving averages are very easy to follow. Let's take a look at this simple system.

Here the term:

Currency pairs: ANY
Time frame chart: 1 hour or 15 minute chart.
Indicators: 10 EMA, 25 EMA, 50 EMA.

Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).

Exit rules: option1: exit when 10 EMA crosses 25 EMA again.
option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called “touch” has been closed on the opposite side of 50 EMA).

Thats very simple ok. Look at the picture/diagram at the top.

Thank you for you attention.

1 comments:

-=[ Unknown]=- said...

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Well good luck ;)