Dec 19, 2012

200SMA - Simple trading strategy

200SMA is really an awesome indicator just itself. I tell you, use 4H chart and currency pairs as many as 10 or above. You may also use 1H chart but not below that.
Now the trading strategy is:

Keep watching all the pairs by applying 200SMA. Anytime when a candle closes crossing the 200SMA, just open a position following the trend. I would suggest opening 2 positions. One with take profit from 10-15 and when that is been hit, move the stop loss of other position to breakeven. This will save your profit and even if this position hit the stop loss, you are already in profit. What my observation is that when this movement happens, generally price goes as long as 500 pips but I dont want to take the risk in order to earn great money. Other position you can monitor and take profit wherever you want if it is favoring you.

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