The proposed strategy for h1 employs the classical method of working out the trend on the various periods. The optimal set of exponential moving averages allows to successfully filter the market without the use of oscillators.
It is recommended for beginners and amateurs of the technical analysis. Moving averages have always been considered a leading indicator of sentiment of the majority of market players. If the current price moves above the moving, it means that the market exceeds the expectations of investors, if below — it disappoints them. The fact of the average breakthrough always warns about changing trends. Using averages makes it possible to trade in the direction of the strongest trends.
The traditional delay of the moving averages in this strategy for h1 is removed using multiple averages with different periods — the faster ones act as filters for slower ones. The principle of strategy operation and basic requirements. Thanks to this, EMA reacts faster to changes in price. A more sensitive EMA indicator with a smaller period gives more false signals, while a less sensitive greater period — delays harder.
The proposed combination allows to track the main trend, day trend and dynamics within the day. Quick averages act as dynamic support and stop levels. To secure the entry, mutual arrangement of the averages from fast to slow must match the direction of the trend. Strategy for h1 implies long- and medium-term positions, which requires a sufficient deposit and preferably small swaps, while dictating strict rules for managing capital.
Only standard exponential moving averages are set on the H1 price chart, color-coded:. Trading with medium-volatile pairs with a stable trend is recommended: Timeframe to search for an entry point is M30, to trade — H1. Trading without stops is not recommended. We have similar rules for a downtrend. Strategy for h1 can be used to open with the trend or on rollbacks. When the price goes against the trend into the area of EMA 12 and EMA 24 movings, it is a good opportunity to enter on a rollback.
We open trade in the direction of the main trend with a minimum profit of points and then hold to the discretion of the trader. Trades are opened with a minimum profit and then are held, depending on the overall trend. It is possible to trade with pending orders using this strategy for h1.
Reliability of such a signal requires sustained price movement behind the line of the fastest average EMA 8 after the point of intersection of the three movings. Then we monitor the open position in the usual manner. Since no additional indicators are used, the take-profits are usually placed according to the terms of money management.
Trading-stop of the open position allows to pull the long trend to a maximum, and for the most reasonable exit of the transaction you can use the moment of crossing the EMA 12 line by EMA 24 in the opposite direction.
It only works out the global trend and cuts intraday movements, and its stability is overshadowed only by a large number of "false" signals that appear at the end of the trend and at the transition to the flat movement. In spite of this, the approach is popular due to its simplicity, use of the standard indicators and low risk.
Practical application of the strategy over gave profitable trades and only 59 unprofitable. Forex About the site. Set of Moving Averages: Classical Strategy for h1. All information is provided for reference and cannot be considered as a recommendation. Website administration is not responsible for damages resulting from the use of the information provided.
Settlement of transactions in the foreign exchange and stock markets involves taking concomitant, high risks by the trader. Before you start trading, you need to understand how much you can lose, and in no case change this amount. Please only risk with the funds available to you, and do not use borrowed money in trading.More...