Forex Trend Trading With a Simple Moving Average

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




Am I a Dyslexic, ADD Gamer? Am I a Dyslexic, ADD Gamer?
Posted by: markeedragon

Video duration: 1616 seconds

Markee Dragon is a Dyslexic ADD Gamer and tells of his experiences.
Massive code Giveaway! Massive code Giveaway!
Posted by: markeedragon

Video duration: 298 seconds

http://www.shattered crystal.com/code.php /fallen_earth/~17147 7-YTMDmassive Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Codes Galore!
Fallen Earth FREE codes Fallen Earth FREE codes
Posted by: markeedragon

Video duration: 119 seconds

http://www.shattered crystal.com/code.php /fallen_earth/~17147 7-YTMDfallenearth Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Introducing Fallen Earth
Frostmourne Sword Contest Fairness Frostmourne Sword Contest Fairness
Posted by: markeedragon

Video duration: 362 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDContest Fair Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Is the contest fair?
I\ I'm telling about what cameras I use.
Posted by: markeedragon

Video duration: 670 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDCameras Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
I'm telling about what cameras I use.
Contest Questions Answered Contest Questions Answered
Posted by: markeedragon

Video duration: 386 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDcontest Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Bonus!
Best Guild or Clan Moments Best Guild or Clan Moments
Posted by: markeedragon

Video duration: 196 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDbestgui ld Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Bonus!
Deqa Always Gets the Code. NOT! Deqa Always Gets the Code. NOT!
Posted by: markeedragon

Video duration: 138 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDDeqa Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Hmmmm........
World of Warcraft SCAM to take your account! World of Warcraft SCAM to take your account!
Posted by: markeedragon

Video duration: 294 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDWoWScam Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
You clicked the link!?!
Free WoW code. Free WoW code.
Posted by: markeedragon

Video duration: 74 seconds

http://www.Facebook. com/DeriumsCCGs Derium's CCGs is located in Cuyahoga Falls Ohio. Visit them and tell them thank you for the free codes!
Just a free code. Nothing more. :)
Do Gamers Need to Grow Up? Do Gamers Need to Grow Up?
Posted by: markeedragon

Video duration: 439 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDGoldFar ming Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
When you are a gamer do you have to grow up?
Gold Farming Gold Farming
Posted by: markeedragon

Video duration: 572 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDGoldFar ming Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
http://playmoneyf ilm.com
Derium's CCGs is located in Cuyahoga Falls Ohio. The facebook page is http://www.Facebook. com/DeriumsCCGs . Visit them and tell them thank you for the free codes!
Jagex (Runescape) Vs. BOTS = Jagex Wins! Jagex (Runescape) Vs. BOTS = Jagex Wins!
Posted by: markeedragon

Video duration: 318 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDJagexvs bots Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Jagex shoots at Bots and scores!
Indie Game Development - Do Games Need to be Unique? Indie Game Development - Do Games Need to be Unique?
Posted by: markeedragon

Video duration: 473 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDIndy Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
http://www.zectra com.com
Do you need unique game play?
Criminal Charges for in Game Theft? Criminal Charges for in Game Theft?
Posted by: markeedragon

Video duration: 538 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDTheft Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Could you be brought up on charges for ganking someone in game?
Why DRM? It\ Why DRM? It's an Anti-Piracy Thing.
Posted by: markeedragon

Video duration: 325 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDDRM Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
I hate DRM as much as the next person. But something is needed to stop piracy.
The Failure of Auto Assault MMO The Failure of Auto Assault MMO
Posted by: markeedragon

Video duration: 418 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDAAMMO Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
A look at the failure of Auto Assault and how it has improved the games we play today.
Russian Organized Crime and Money Laundering through MMOs Russian Organized Crime and Money Laundering through MMOs
Posted by: markeedragon

Video duration: 427 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDROC Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
What are some dumb things video game companies have done? Sometimes they don't have a clue.
Free code from Derium\ Free code from Derium's CCG
Posted by: markeedragon

Video duration: 124 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDHardWor k Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Derium's CCGs is located in Cuyahoga Falls Ohio. The facebook page is http://www.Facebook. com/DeriumsCCGs . Visit them and tell them thank you for the free codes!
Key to Success: Lots of Honest Hard Work. Key to Success: Lots of Honest Hard Work.
Posted by: markeedragon

Video duration: 485 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDHardWor k Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
FREE: 9600 GamersFirst credits to the first person to grab them! FREE: 9600 GamersFirst credits to the first person to grab them!
Posted by: markeedragon

Video duration: 69 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDGFCredi ts Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
This is a hot one. Grab them now while you can!
PasswordCracks says it\ PasswordCracks says it's UNFAIR!
Posted by: markeedragon

Video duration: 285 seconds

http://www.shattered crystal.com/code.php /~171477-YTMDPWCrack s Support for this video production has been provided by Shattered Crystal game codes. Many of the free codes come from SC!
Calling the kettle black. What can I say?