You are on page 1of 3

Moving Average TECHNIQUE

Moving Average Breakout:


In this method we need to plot a Moving Average Indicator on the chart (i.e. 24 hours
LWMA on EURUSD Hourly chart).

When the price crosses the Moving Average down-up and there’s a complete candlestick
above the Moving Average indicator we Buy.
When the price crosses the Moving Average up-down and there’s a complete candlestick
below the Moving Average indicator we Sell.

Moving Averages Crosses:


In this method we need two (or more) Moving Average Indicators; The first one will be
set with a small period (It called the Fast Moving Average) and the second one will be set
with bigger period (It called the Slow Moving Average). i.e. 10 days EMA and 80 days
EMA on EURUSD Daily chart.

When the Fast Moving Average crossed the Slow Moving Average down-up we Buy.
When the Fast Moving Average crossed the Slow Moving Average up-down we Sell.
Moving Averages Channel:
In this method of trading we use two Moving Average Indicators which hardly could
cross each others (i.e. The first Moving Average is 10-Period SMA of the price high and
the second Moving Average is 8-Period SMA of the price low)
These indicators will plot upper and lower boundaries of the channel.

When the price crosses and a complete candlestick is above the upper boundary of the
channel we Buy.
When the price crosses and a complete candlestick is below the lower boundary of the
channel we Sell.

You might also like