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Thursday, April 25, 2024

Forex Trading Guide 2021: Long term trading strategy

A simple strategy based on moving averages and is designed for many currency pairs and other financial instruments. This strategy uses daily and weekly charts.

The essence of the strategy:

1. Plot three standard moving averages on the W1 chart (values ​​of periods 4, 8 and 40, which are drawn at the
opening prices)

2. On the daily chart, we also plot three standard moving averages, which are drawn at open prices with periods of 5, 20 and 50.

3.Opening short positions:

On the weekly chart, SMA (4) and SMA (8), as well as SMA (20) on the daily chart, are pointing down.

The price is below the listed moving averages.

SMA with a period of 5 went up and then turned down.

The average SMA (20) previously went up or horizontally, and the price crossed it from top to bottom and fixed below the moving one.

4. The purchase is made under the opposite conditions.

5. We open a deal once a day.

6. Set the stop loss at the level of the previous high (sell) or low (buy) + 10 points.

Forex Trading Guide 2021 Long term trading strategy 1

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