Best forex trading strategy : The entry point, exit point, and stop loss point for 50 and 200 SMA Trading will be decided using candlestick patterns, the 50 Period Simple Moving Average (SMA20), the 200 Period Simple Moving Average (SMA200), and both of these moving averages. With the 5Min, 1H, 4H, and daily timeframes, this approach is advised for use. As for the guidelines:
When you enter a short position
SMA 50 is below SMA 200;
- A decrease in price below the SMA 50;
- Pay attention to candlestick patterns to identify trends
- Exit when the price reaches the SMA 50 from the past;
- Position your stop loss just one penny above the last swing high.
When the following conditions are met: – SMA 50 is above SMA 200;
- Price exceeding SMA 50;
- Keep an eye out for candlestick patterns to identify trends
- Exit when the price reaches the 50-day SMA in reverse;
- Position your stop loss just one penny above the previous swing high.
Best forex trading strategy: Long Trade Illustration
The 50-SMA remains above the 200-SMA in this instance. Price at the time formed a reversal momentum pattern, indicating a potential reversal. The price is beginning to move higher above the SMA 20, and the second bullish candle supports our prediction. When the price reaches the 50-SMA once more, we exit our long position with a stop loss set at the lowest point in the swing
Best forex trading strategy: Example of a Short Trade
In this case, the 50-SMA crosses below the 200-SMA. When the price formed a Spinning Top pattern, it indicated the possibility of a reversal. The second bearish candle supports our prediction as the price begins to decline below the SMA 50. When the price reaches the 50-SMA, we exit our short position with a stop loss placed at the swing’s greatest level.