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
 |
rapidforex.com shares part 3 of the Rapid Forex free online ... Posted by: RapidForexBlog
Video duration: 591 seconds Global video hits: 4948 rapidforex.com shares part 3 of the Rapid Forex free online forex trading method Forex Sailing, which makes forex swing trading easy! This lesson shows you how to pick a trend direction on daily charts & zoom into 4 hour forex charts to find forex swing trading opportunities in minutes.... |
 |
Forex Training - TheInsiderCode.com Mac X pt.20i Posted by: forexstrategyguide
Video duration: 306 seconds Global video hits: 3303 www.TheInsiderCode.c om - Forex Training - pt.20i with Forex Expert Mac X of The Insider Code. Mac X Trading the Forex with an Unfair Advantage. Forex Training - pt.20i - More Forex Videos at www.TheInsiderCode.c om |
 |
Powerful Forex Divergence Trading Posted by: forexteam
Video duration: 464 seconds Global video hits: 7535 Peter Bain of Forexmentor demonstrates how to use the powerful divergence tactics to predict price reversal. Please Rate & Subscribe to me Thanks! forexmentor.com http forexmentor.com |
 |
Re-Tests: Resistance Becomes Support (Forex News Trading) Posted by: fxKnight
Video duration: 344 seconds Global video hits: 10378 Resistance breaks, tests as support, then straight up to M3 median. Sign up to receive market insights, trading tips, and invitations to FREE webinars: bit.ly |
 |
Forex Trading Robots Posted by: LaszloForgacs1
Video duration: 266 seconds Global video hits: 12 Check it Out Here... ae170a1atb5fh418ghzf 50xy8j.hop.clickbank .net The best forex robot trading system is the fap turbo forex robot. It is not hard to make money with a forex automatic robot like this one. This automatic forex system will pull profits for you. A forex robot is an automated... |
 |
Watch Me Day Trade Live 10-25 Part 3 Posted by: sgomez858
Video duration: 554 seconds Global video hits: 20906 Live Day Trading video from my screen. Real Time Day Trading tutorial and commentary on my trading day. I show and explain the winners AND the losers. I trade small size for this example to show that it can be done with low risk. (more) |
 |
Best Ever of Just for laughs Gags Part 5 - TradeBankerStyle.blogspot.com Posted by: TradeBankerStyleFX
Video duration: 758 seconds Global video hits: 18632 www.TradeBankerStyle .blogspot.com { Entertainment and Forex Trading TV-Video News Portal }, Analysis Reviews and Economic Events Calendar News,-Channels include Forex-TV,Dukascopy-T V,ForexClub-TV,CNBC- TVLiveStream,Bloombe rg-TV, Helping and guiding investors and managers to profit in Trading Forex,stocks,oil,gol d,?commodities |
 |
eBook Forex Posted by: InvestingPeople1
Video duration: 635 seconds Global video hits: 2464 Il business del Forex Trading e-Book di Arduino Schenato sulla Price Action |
![FX Training: \"Gold\"](http://i.ytimg.com/vi/udHCfuxz1vY/2.jpg "FX Training: \\"Gold\\"") |
FX Training: "Gold" Posted by: FxProMarketing
Video duration: 121 seconds Global video hits: 3166 Bloomberg Forex Masterclass: How to trade Gold online and with a CFD broker - Brought to you by specialist forex broker FxPro. www.fxpro.com |
 |
Best Ever of Just for laughs Gags Part 8 - TradeBankerStyle.blogspot.com Posted by: TradeBankerStyleFX
Video duration: 747 seconds Global video hits: 14974 www.TradeBankerStyle .blogspot.com { Entertainment and Forex Trading TV-Video News Portal }, Analysis Reviews and Economic Events Calendar News,-Channels include Forex-TV,Dukascopy-T V,ForexClub-TV,CNBC- TVLiveStream,Bloombe rg-TV, Helping and guiding investors and managers to profit in Trading Forex,stocks,oil,gol d,?commodities. |
 |
76. What Your Trading Journal Tells You - Forex and Stocks Posted by: InformedTrades
Video duration: 407 seconds Global video hits: 9973 www.informedtrades.c om A lesson on what successful traders look for when reviewing their trading journals for active traders and investors in the stock, futures, and forex markets. |
 |
Forex Simple Trading scalping at its best Posted by: MrFxeuro
Video duration: 310 seconds Global video hits: 3969 Once again keep it simple www.forexclassmate.c om.. follow my simple stratergy and trading style with a 7 DAY FREE TRIAL. |
 |
How to Beat the Odds Forex Scalping Triad Trading Formula Posted by: triadtradingformula
Video duration: 450 seconds Global video hits: 9254 get.mytriadtradingfo rmula.com A look at how to beat the odds when scalping in the forex market from Jason Fielder of Triad Formula. http |
 |
big forex Profit by using a simple trading technique Posted by: Forex7trading
Video duration: 466 seconds Global video hits: 3841 Click here an get free automated forex signals forextrading1.zulutr ade.com Trading strategy 3 Whether markets are moving up or down, this trading strategy from themarketforecast.co m works to keep you on the right side of the market, every time. Use it for EFT's, E-minis or any index you have dreamed about trading. |
 |
130+ Pip Winner Trading the Ichimoku Cloud - FOREX -GBPH4 Posted by: TheIchimokuCloud
Video duration: 593 seconds Global video hits: 13373 www.ichimokucloud.co m Automated forex trading system based on the Ichimoku indicator. Expert advisor robot trader built for metatrader MT4. |
 |
best forex charts Posted by: bandit7060
Video duration: 570 seconds Global video hits: 2564 Forex charts with built-in trade setups, trade signals, momentum indicators and unbelievable realistic targets. Complete free training, advanced training, free live Trading Room. |
 |
Market Wizdom 1 Effortless Trading Posted by: TheTradingAuthority
Video duration: 601 seconds Global video hits: 2389 Market Wizards author Jack Schwager studied profitable traders and trading systems and compiled there secrets of how to trade success in 1 book. In this video, we see what it takes to trade effortlessly - and not force the market to do what we want. Rather, we move in it's flow and take profit following the trading system rules. |
 |
95. How Trading on Margin Works Posted by: InformedTrades
Video duration: 391 seconds Global video hits: 22256 www.informedtrades.c om A lesson on what trading on margin is and how this applies when trading the forex market. For active traders and investors seeking to learn how to trade the currency market. |
 |
Simply FX - Learn To Trade Forex Posted by: TraderWays
Video duration: 533 seconds Global video hits: 17192 A simple to apply forex trading strategy that works for anyone and can have you making money tomorrow. This is battled tested and works a dream. Produced by a very experienced trading team who work with some of the biggest names in the industry. |
 |
Forex Moving Average Cross Strategy Posted by: caseystubbs
Video duration: 492 seconds Global video hits: 4821 www.winnersedgetradi ng.com This is a good forex trading strategy that can be used to increase profits over the long term. |
| 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 |
