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
 |
Make Money With Your Camera Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Learn How To Sell Stock Photos Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
How To Sell Stock Photos Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Sell Stock Photos Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Make Money With Stock Photos Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
How to make money selling photos online Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Start A Photography Business - Selling Stock Photos Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Sell Stock Photos Online - Learn how to take great pictures Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
How to sell stock photos online and make some money? Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Selling your Pictures Online Posted by: deoG85
Video duration: 119 seconds http://ephotostock.b logspot.com To start selling stock photography, you'll need to do your research to find websites that sell royalty-free photography. Make money by selling your stock photography. http://ephotostoc k.blogspot.com |
 |
Learning To Trade Forex Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
Money Making Forex Trading System Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
Forex Strategy Forex Tips Forex Charts Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
AMAZING!!! Best Forex Trading Rrobot Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
Forex Trading System Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
Forex Expert Advisor - Amazing Results Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
The Best Forex Robot For Big Gains Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
AMAZING!!! Forex Trading System Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
Forex Automated Robot Trading Posted by: deoG85
Video duration: 36 seconds http://forexbuletpro ofrobot.blogspot.com Forex Bullet Proof created by the Guys who made Fap Turbo the most successful trading robot ever, so we know this is no scam. Can Forex Bullet Proof Grab the crown from Fap Turbo and smash even more profit records. You can't afford to miss this read the review now http://forexbulet proofrobot.blogspot. com |
 |
How to create your own energy at home Posted by: deoG85
Video duration: 257 seconds http://freeelectrice nergy.blogspot.com/< br /> You Are About To Discover An Astounding Secret That Energy Companies Have Been Desperately Trying To Suppress! http://freeelectr icenergy.blogspot.co m/ |
 |
How To Save Money On Electric Bills Posted by: deoG85
Video duration: 257 seconds http://freeelectrice nergy.blogspot.com/< br /> You Are About To Discover An Astounding Secret That Energy Companies Have Been Desperately Trying To Suppress! http://freeelectr icenergy.blogspot.co m/ |
 |
How to Slash your electric bill Posted by: deoG85
Video duration: 257 seconds http://freeelectrice nergy.blogspot.com/< br /> You Are About To Discover An Astounding Secret That Energy Companies Have Been Desperately Trying To Suppress! http://freeelectr icenergy.blogspot.co m/ |
 |
Tips for Reducing Electric Bills Posted by: deoG85
Video duration: 257 seconds http://freeelectrice nergy.blogspot.com/< br /> You Are About To Discover An Astounding Secret That Energy Companies Have Been Desperately Trying To Suppress! http://freeelectr icenergy.blogspot.co m/ |
 |
Reducing Electric Bill Posted by: deoG85
Video duration: 257 seconds http://freeelectrice nergy.blogspot.com/< br /> You Are About To Discover An Astounding Secret That Energy Companies Have Been Desperately Trying To Suppress! http://freeelectr icenergy.blogspot.co m/ |
 |
Reduce Your Electric Bill Posted by: deoG85
Video duration: 257 seconds http://freeelectrice nergy.blogspot.com/< br /> You Are About To Discover An Astounding Secret That Energy Companies Have Been Desperately Trying To Suppress! http://freeelectr icenergy.blogspot.co m/ |
