Forex Trend Trading With a Simple Moving Average
By Nathan Navachi
While many new forex trading systems are based on complicated mathematical market analysis models, some of the most effective forex trading strategies are also the simplest. One of these simple and highly effective strategies is trend trading, where you simply see which direction the market is trending in and then you trade in that direction. If you were trading the EUR/USD currency pair, the way that you could identify the direction of the trend is to open up a daily chart and overlay a simple moving average on the chart. If the direction of the moving average is up, then the pair is in an uptrend; if the moving average line is down, there is a downtrend; and if the line is horizontal then there may be no trend.
Trend trading is a proven way to earn profits in the forex market since it is an established fact backed by decades of market research that currency pairs (and indeed literally all markets) move in trends. If the trend is up then it makes sense to buy, if the trend is down then it makes sense to sell, and if there is no trend then it may not be a good time to trade. The best way to get an accurate sense of the overall trend is to look at a long-term price chart such as a daily, weekly, or monthly chart and see which direction the moving average line is pointing. While it may not be practical to use a monthly chart for trading signals, it can let you see in a quick glance where the market has been and where it will be headed if the trend continues.
It is a general rule of interpreting trading signals that the longer the period of the price chart is, the more reliable the trading signal will be. This strategy of determining the trend and then trading in that direction could be used on a chart as small as a one minute candlestick chart or as large as a daily or even weekly chart if you are really a long-term trader. Now while trading signals from long-term charts can be more reliable, there is also larger risk involved with keeping a trading position open for days or weeks at a time. If you plan to trade on these types of longer time frames, be sure to factor in the amount of leverage you are using as a function of how many pips you are willing to risk on a loss.
On the short-term side, this strategy can be used on a 1-minute or 5-minute chart but the signals may not be as reliable and the trend itself may be erratic and rapidly changing. It is common sense that the steepness of the moving average line indicates how quickly the market is moving up or down, and if you can identify a fast moving trend on this type of price chart then you open yourself up to large gains if you can enter in on the right side of the market and ride the trend for as many pips as possible before the market retraces itself.
The easiest way to learn forex trading is by watching videos. Go to this YouTube video and watch a video commentary for this article.
Nathan Navachi is a professional trader who built http://TheCurrencyMarkets.com as a valuable resource to introduce the world to the forex market.
Article Source: http://EzineArticles.com/?expert=Nathan_Navachi
http://EzineArticles.com/?Forex-Trend-Trading-With-a-Simple-Moving-Average&id=2690813
 |
FOREX TRADING - Scalping Posted by: Yaguex
Video duration: 567 seconds Global video hits: 298744 Learn To Trade Forex Directly From A Professional Trader. Watch My Live Forex Videos. www.LearnForexLive.c om |
 |
Free Forex Trading System Posted by: OzTrader
Video duration: 172 seconds Global video hits: 11305 Free Forex Trading System |
 |
Forex Education - Live Forex Trade Video +40 Pips on GBP/JPY Posted by: Forex4Noobs
Video duration: 396 seconds Global video hits: 16476 www.forex4noobs.com Live Forex Trade Video, I Make +40 pips on GBP and Give You Some great Forex Tips! Watch me enter this trade and make +40 pips in a few hours. I explain my thought process, how the trade worked and how more pips could have been made. |
 |
FOREX Training | FOREX Trading | FOREX Video Posted by: nataliru
Video duration: 279 seconds Global video hits: 158389 Watch Forex Trading learning videos - the easiest way to understand all ins and outs of currency trading. The Forex Video Education is so simple - you will be ready to start Forex Trading right away. Make your first step to Forex Trading NOW! |
 |
78. An Overview of the Forex Market Posted by: InformedTrades
Video duration: 316 seconds Global video hits: 70884 www.informedtrades.c om The first lesson in our new free video forex trading course which introduces the main aspects that differentiate the forex market from the equities and the futures markets. |
 |
Forex Training | Effective Forex Trading Training Posted by: ForexStrategySecrets
Video duration: 237 seconds Global video hits: 43970 www.forexstrategysec rets.com This videos showcases two trades I made based on the forex training strategy Jump Start Strategy. This Forex training is a daily cash flow strategy based on 2 simple indicators. |
 |
Forex Market Update Live Forex Trading Video Trade Advisor Pro Posted by: tradeadvisorpro
Video duration: 590 seconds Global video hits: 4073 www.TradeAdvisorPro. com - Signup now to learn in-depth how to trade Forex in one of our Free Forex webinar trainings. free forex training forex training videos free forex training videos make money with forex how to trade the EUR/USD www.youtube.com www.youtube.com |
 |
Forex Trading System - Candlestick Trading Series 1 Posted by: VideoForex
Video duration: 286 seconds Global video hits: 38601 www.ForexPowerTradin gSystem.com - Trading Candlestick Patterns. Candlestick Trading Series video 1 - Understanding and trading candlesticks as they apply to the Forex market. We will cover the most basic to advanced trading patterns. |
 |
FOREX Training - Timing Your FOREX Trades Pt 1 Posted by: fxbootcamp
Video duration: 1491 seconds Global video hits: 127257 This is a video overview of how to improve the timing of your trades using moving averages. The goal of the forex trading strategy is to align market and price action for the best chance of success when you pull the trigger. Video produced by FX Bootcamp, LLC (www.fxbootcamp.com |
 |
FOREX TRADING - trendline breakout trade Posted by: Yaguex
Video duration: 600 seconds Global video hits: 25223 Watch me day trading forex LIVE with my 3SMA forex trading system! Visit my website at www.hectortrader.com |
 |
What is Forex Trading - for Beginners - Part 1 Posted by: Forex7trading
Video duration: 510 seconds Global video hits: 141394 Click here an get free automated forex signals forextrading1.zulutr ade.com forex trading strategies forex day trading forex trading platform forex trading strategy global forex trading forex trading signals automated forex trading forex trading signal managed forex trading forex... |
 |
Learn Forex Trading Posted by: readyforex
Video duration: 430 seconds Global video hits: 1446 Learn forex trading with video tutorials, PDF e-book, Meta Trader 4 custom indicators, Free telephone support and US$ 2000 live forex trading account for the sake of practice. |
 |
Forex Video | Trading Tip | Timing with Trend Lines and Fibs Posted by: pnewton69
Video duration: 383 seconds Global video hits: 10588 www.trading-strategi es.info Another trading tip with trend lines and Fibonacci retracements to give you a time reference for when you could expect a retracement and where it could retrace to. |
 |
forex trading example - a guide in forex trading Posted by: fibo777
Video duration: 159 seconds Global video hits: 2168 trend0.blogspot.com In this video I remind of two signals that I gave the day before yesterday, usd/chf buy and eur/chf buy, according to my range trading strategy. Also I give a new one, which is gbp/jpy sell, according to my breakout strategy. Good luck in forex trading. See also: trend0.blogspot.com See also my last videos on gold and silver: www.youtube.com www.youtube.com |
 |
Forex Calculator - How Much Money Can You Make in Forex? Posted by: tradeartist
Video duration: 416 seconds Global video hits: 111975 www.forextradingsemi nar.com/blog/ - Ever wonder what is really possible to achieve in Forex trading without any ridiculous hype? The best way to find out is by consulting a Forex Trading Income Calculator. |
 |
Forex Trading Robots - Do Forex Robots Really Make Big Profits? Posted by: fxinfoonline
Video duration: 404 seconds Global video hits: 5075 www.learncurrencytra dingonline.com Forex trading robots are big business but very few work and this video discusses the myths that Forex robot and Forex expert advisor vendors promote. The video also looks at the reality of how much money you can make with the best Forex trading systems, how to find them and finally, how to make long term gains and become a successful Forex trader from home. |
![Forex Trading for Beginners What the brokers don\](http://i.ytimg.com/vi/qOJqarBw1sw/2.jpg "Forex Trading for Beginners What the brokers don\") |
Forex Trading for Beginners What the brokers don't tell you Posted by: 50wallstreet
Video duration: 309 seconds Global video hits: 44160 www.55trader.com Want to learn how to profit from financial markets including Currencies, Vince Stanzione gives you some tips from his 26 years trading experience and explains why you do not have to be glued to a screen all day to make money trading Forex.Forex Trading for Beginners -- What... |
 |
Forex Trading System - Candlestick Trading Series 4 Posted by: VideoForex
Video duration: 330 seconds Global video hits: 13812 www.ForexPowerTradin gSystem.com - Candlestick Trading Series video 4 - Understanding candlesticks as they apply to the Forex market. We will cover the most basic to advanced. Keep checking back for new videos. |
 |
Forex Trade Alerts - Watch This Video...Forex Trade Signals Directly to Your Inbox! Posted by: tradeadvisorpro
Video duration: 1678 seconds Global video hits: 5322 www.tradeadvisorpro. com - Get our Award Winning Forex Trade Alerts and Training Videos Here! The simplest way to improve your forex trading using solid forex alerts to help you trade the market. |
| Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 |
