Hi all IM members,
It been a few weeks since my last post, Hope it does not create dissapointment to readers who visit my blog found out that it has not been updated. I have been busy doing research for my upcoming post topic on forex. In My previous entries on forex, i only briefly explain what forex is, so now after much research, i have finally gather enough info on forex strategies which i will be sharing through the upcoming posts. So before i get started, i like to let all of you know that there are many type of traders, for example intra-day trader, short term and long term trader, scalper, break out trader and many more. As for me i am an intra-day trader, which mean i never leave my trade position open for overnight. To find out more about what kind of trader you are or what type of trading pattern you are comfortable with, you can try to start with a demo account and do trading see which type a trader you are. After knowing what type of trader you are, then you can start select which type of trading strategies suit you. So without further delay, today i will touch on moving average strategies. First of all let me show you how it look like.
As you can see from the pictures, When using moving average exponential, i set it into 3 different periods which as the result there are 3 different EMA lines in the chart.Following are the setting
Chart= 15 mins
Indicators= EMA 5,10,50
Entry rules= When EMA 5 goes through EMA10 and continues through EMA20
Exit rules= When EMA5 crosses EMA10 or EMA5 touches EMA 20
The advantage of this strategy is that it is easy to use, it produce good result when the market is trending and big price moved, however this indicator is a lagging indicator which not suitable to predict future market movement, and it change signal anytime any second so need constant monitoring. It might also give false signal when market move sideways. This strategy is suitable for intraday trader as you can get out of trade normally in a few minutes or hours time. The setting can also be variable depend on the traders.
"Happy trading"- Stephen
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