moving average strategy

[sniper012]

This is something that I have used from time to time with pretty good success. All I use is a 21 period moving average but if you would like to use something else in addition to determine trend, feel free to do so.
The chart shows that there were several closes below the moving average so we look at this as being in a downtrend. Candle 1 makes a high and candle 2 makes a higher high. Candle 2 closes above the moving average, and this is key to the strategy. Now the candle right after candle 2 makes a lower high, this is also key. Now we wait for a close below candle 1, which I indicated on the chart, and we trade short on the close of that candle. Our stop loss is the swing high, which is candle 2. Our profit target is 3x our risk. Make sure your account can handle the potential stop loss. That red line on the chart doesn't mean anything for this particular strategy.

[sniper012]

This is the same daily chart a little while later. Now there is a setup on the bullish side. Candle 1 makes a low. Then candle 2 makes a lower low and it closes below the 21 day ma. The following candle makes a higher low so now we wait for a close above candle 1. Once that candle closes above candle 1, we enter. Again, we place our stop loss at the swing low, which is candle 2 and we look for a profit of 3x the risk. So if our stop loss is 120 pips, we look for a profit of 3x120, which is 360 pips.

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[sniper012]

and again, it works. This is a good strategy for those of you who like to wait for confirmation.

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[sniper012]

and again...same pair, just a little further back...

[sniper012]

This is a current gbp/usd chart. Should the strategy hold up, we should enter short when there is a close below the circled red candle.

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[DickP]

The chart shows that there were several closes below the moving average so we look at this as being in a downtrend. Candle 1 makes a high and candle 2 makes a higher high. Candle 2 closes above the moving average, and this is key to the strategy. Now the candle right after candle 2 makes a lower high, this is also key. Now we wait for a close below candle 1, which I indicated on the chart, and we trade short on the close of that candle. Our stop loss is the swing high, which is candle 2. Our profit target is 3x our risk. Make sure your account can handle the potential stop loss. That red line on the chart doesn't mean anything for this particular strategy.

That's actually really smart man, props to you!

[sniper012]

Thank you. when I find that something works, I like to post it.

That's actually really smart man, props to you!

[DickP]

Yea, I stick to my guns but I should post more of what I like too, but I am actually looking for entries based on this today. Did you see EURJPY?

[sniper012]

do you mean on the daily chart? I haven't had a chance to look at it.

Yea, I stick to my guns but I should post more of what I like too, but I am actually looking for entries based on this today. Did you see EURJPY?

[Mike]

Great day for EURUSD and moving averages.

If you notice here theres the Yellow Balance Point Line which isn't exactly a moving average based on statistical averages but volume and this "trend channel indicator" the middle white line of which is in fact a 60 min moving average. And remarkably (or predicatbly) we see a literal spark of buying activity when price taps both of these lines at once; price taps them many times individually but when together you get this monster trade instantly.

All thanks to moving averages, and chandeliers (for me).

Great day!


My major rules were all going for me

1) Price Above Yellow Balance Point Line (or buy Dip of this line with proper strength level).
2) Price Above the Middle Trend Line (60min moving average)
3) All Chandeliers Turn Green at 6AM

[Jones]

Great day for EURUSD and moving averages.

If you notice here theres the Yellow Balance Point Line which isn't exactly a moving average based on statistical averages but volume and this "trend channel indicator" the middle white line of which is in fact a 60 min moving average. And remarkably (or predicatbly) we see a literal spark of buying activity when price taps both of these lines at once; price taps them many times individually but when together you get this monster trade instantly.

All thanks to moving averages, and chandeliers (for me).

Great day!


My major rules were all going for me

1) Price Above Yellow Balance Point Line (or buy Dip of this line with proper strength level).
2) Price Above the Middle Trend Line (60min moving average)
3) All Chandeliers Turn Green at 6AM

Why must you hijack others' threads with your TopGun rubbish

[cuteforex]

thank you for the charts

[Mike]

Here's a good chart for you Sniper, look how USDJPY was really selling off and maintaining this trend channel, but breaks it and has been testing this moving average for over a week now, stuck in a range, there are opportunities of course, but no clear indication of a trend. Still interesting chart.

[davidK]

Here's a good chart for you Sniper, look how USDJPY was really selling off and maintaining this trend channel, but breaks it and has been testing this moving average for over a week now, stuck in a range, there are opportunities of course, but no clear indication of a trend. Still interesting chart.

How do you know what moving average setting to put on what chart, the possibilities are endless no?

You understand like, should I put a 60SMA on a daily chart? You are putting what, a 1ooSMA on a daily chart? What works best?

[sirPips]

you exit on cross of moving average blue line?

[sniper012]

exit on a close above that line if you are short and below that line if you are long.

[Kikendahl]

Hello Sniper, I agree with your strategies on the Moving averages.

[J&B]

and again, it works. This is a good strategy for those of you who like to wait for confirmation.

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AWESOME! let me try this out later in tonights action!

[Thom]

This is the first worth while method I've seen on this forum.

[sniper012]

Although I posted it, you have to keep in mind that although it is an effective method, anyone can cherry pick and find good examples in hindsight. Secondly, these don't pop up all that frequently on daily charts, which is the only time frame I would trade them on. And lastly, you're usually looking at a pretty substantial stop loss. That said, it's a good strategy. If you use it, I would suggest that you look for candidates with a maximum of a 100 pip stop loss. It may also be useful to check the volume of your entry candle. If it's higher than the candle that preceded it, that can enhance the signal.

This is the first worth while method I've seen on this forum.