Forex Trading Method- Moving Average Crossover

Moving average is an important and useful indicator in Forex market. Many traders got success by using this indicator.

There are four types moving average……

1.Simple

2.Exponential

3.Wieghted

4.Smoothed

Different traders use different types of moving average indicators and their combination.

Here we show how can you gain by using two moving averages crossover method.

But before using the indicators you must follow some rules……

*Avoid trading during news releasing. Because sometimes market trend changed after news releasing.

*Always follow money management.

*When you get the opportunity only then trade.

Moving Average details as below…………….

1.Moving Average 1:

The parameters of the moving average are “Period”-10, “Type”-Smooth, “Color”-Red.

2.Moving Average 2:

The parameters of the moving average are “Period”-20, “Type”-Smooth, “Color”-Blue.

Now we discuss about Buy/Sell trade. So read the details carefully and then try it.

Time frame: H4

Buy Trade:

a.       When Red moving average cross the blue moving average from down side.

b.      Candle must be upper from moving average.

Sometimes you find that moving average 1 cross the moving average 2 and candle not upper from moving average. That time must avoid the trade.

See the below image, You can understand easily……………..

Sell Trade:

a.       When Red moving average cross the blue moving average from up side.

b.      Candle must be down from moving average.

Sometimes you find that moving average 1 cross the moving average 2 and candle not down from moving average. That time must avoid the trade.

See the below image, You can understand easily……………..

By using this method you can gain 70% to 80% times. Always using same amount for every trade. Example if you trade $1 then all time you trade $1. If you follow it then you can gain easily.