Looking for profitable moving average forex strategies? Forex traders love to use moving averages but beginners tend to use many indicators aside to moving average. Some traders are struggling to find reliable forex trading strategy.
Some forex traders strategies are using MACD. Some forex traders love to use Relative Strength Index or RSI in their strategy. Whatever your strategy whether you’re using moving averages or not, just respect your strategy and system and you will become a profitable forex traders.
Profitable Moving Average Forex Strategies
Maybe this is profitable moving average forex strategies used by other forex traders but it does not mean this strategy or forex trading system will be profitable to you, too. So test these strategies and find out if they are profitable or just another waste of time.
1. Forex Trading Strategy: Crossover Moving Average
In using moving averages in your forex trading system, you must understand that there are SLOW and FAST according to the parameters whether you’re using exponential or simple moving averages.
Fast EMA crosses Slow EMA signify trading opportunity. As simple as that.
2. Crossover Moving Averages and Following the Trend Using 200 EMA
5 EMA crosses 10 EMA signify opportunity to enter a BUY trade if the price of your favorite forex pair is above 200 EMA, and vice versa to enter a SELL trade.
5 SMA crosses 10SMA signify SELL opportunity if the price of your forex pair is under the 200 SMA.
It doesn’t matter whether you’re using EMA or SMA, they are both useful if you know what you’re doing.
Profitable Moving Average Forex Strategies and Price Action Forex Trading
Well, this might sound complicated to beginner in forex trading. But if you will learn how to combine this strategies then you will become profitable.
Pure price action trading simply means using “naked chart” and drawing the trends, analyzing movements, etc without using lagging indicators. Wise traders leverage the power of indicators even though these indicators are lagging.
If you love price action trading, try to find the support and resistance, find supply and demand zone and combine the use of moving averages. The 50EMA and 200 EMA crossover are the popular ones.
Tips and Warnings
- Using moving averages can be profitable for many, but it doesn’t mean it can be profitable to you, too. Try to develop a forex trading strategy of your own until you become profitable in your own system. Anyway, it’s just a matter of trading system.
- Also, learn many aspects to become profitable like price action, fundamental & technical, risk reward ratio, discipline, etc..
Soon, I will upload more indicators in this website Daily Investing and Trading Tips. Stay tuned and share this page with other forex traders who love using moving averages so they can become profitable, too.