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
 |
Attendee Feedback from the 2 day London Training session on ... Posted by: FXmoneyMap
Video duration: 575 seconds Global video hits: 2271 Attendee Feedback from the 2 day London Training session on the FXMoneymap |
 |
Forex Rebellion - Indicators - 3 QQE Explained Video Posted by: forexnerd
Video duration: 522 seconds Global video hits: 1690 ?? 50% Forex Bonus Promotion: hotforex.com |
 |
HEIKEN TREND RIDER II Forex Robot YouTube -USE CUSTOM INDICATOR FOR MORE PROFIT.mp4 Posted by: forexstrat101
Video duration: 502 seconds Global video hits: 2346 www.forexstrategy101 .com Presents Live forex trade capture - shows how you can use our custom macd indicator to manually adjust your exits for more forex profit. Visit our site to request information and see full lenght demos and forex training. |
 |
Day Trade to Win - Trading the News - NinjaTrader Trading Education - 2/2/2012 Posted by: NinjaTraderLLC
Video duration: 410 seconds Global video hits: 1286 Download NinjaTrader FREE at www.ninjatrader.com This video from Day Trade to Win provides some helpful tips in trading the news with the NinjaTrader 7 platform. Day Trade to Win www.daytradetowin.co m NinjaTrader 7 is an award winning end to end online trading platform for discretionary and automated trading for stocks, futures and forex. Use it for FREE! |
 |
Forex - Elliot Waves Educational Series - ARABIC SUBTITLES CD1 1/12 Posted by: forexnerd
Video duration: 558 seconds Global video hits: 811 ?? 50% Forex Bonus Promotion: hotforex.com |
 |
eXclusive Forex Simulator Posted by: mt4speed
Video duration: 150 seconds Global video hits: 897 download here: bit.ly The ultimate solution for backtesting your trading strategies when the market is closed, or simply improve your trading skills and practice any time you want. |
 |
Sneakpeek. Live trading room Posted by: BoBokus
Video duration: 357 seconds Global video hits: 3039 Sneak Peek of Trade Kings trading environment |
 |
Forex Day Trading Signals - FREE Live Training Posted by: autoforextrading
Video duration: 197 seconds Global video hits: 392 www.theforexreview.o rg FREE Live trading session webinars are available during trading hours Monday - Friday (9AM-12PM EST). Forex Day Trading Signals |
 |
Price Action Emini Trading Video Posted by: daytradetowin
Video duration: 149 seconds Global video hits: 1219 www.daytradetowin.co m video online trading session with a long emini sp winning trade worth 4 ticks. Futures trading, Currency Trading, and Forex trading is how www.powerpriceaction .com includes 4 dvd online training and workbook |
 |
ITM Forex Signals ROCK The Forex Market!! $900 with 2 Signals Overnight! Posted by: InternetTimeMachine
Video duration: 268 seconds Global video hits: 2032 forexsocialsignals.c om - ITM Signals ROCK The Forex Market!! $900 with 2 Signals Overnight! Follow our channel at www.youtube.com |
 |
$2800 Trading today with the DAX; Learn to trade Futures & FOREX with the SChooloftrade.com Posted by: SchoolOfTrade
Video duration: 427 seconds Global video hits: 4202 Learn to trade futures forex stocks with SchoolOfTrade.com, James Wave, Day trading, education, learn to trade, futures, forex, stocks, DAX, Emini, EUREX, CME, pivots, moving averages, stoploss, profit, profit target, market profile, volume, momentum, swing trading, scalping, DOW |
 |
Stock Trading Courses for Beginners Posted by: JtekResources
Video duration: 425 seconds Global video hits: 38186 StockTradingCoursesI nfo.com Check out this example of the type of stock trading training available through our site. Direct link to course TradingSystemPros.co m. This course is not only for beginners; it is an in-depth course on extremely effective stock trading. techniques. For more information on stock trading visit us at StockTradingCoursesI nfo.com |
 |
Cynthia Recommends - The MAX Trading System - Counting Pips Posted by: elocdesyt
Video duration: 233 seconds Global video hits: 4840 www.cynthia-recommen ds.info We MAX traders won't be worrying about a recession because the pips are worth gold! MAX traders typically make more pips in one trade than most traders make in a month! Sign up NOW! |
 |
Forex Mystery of Time Posted by: tradeartist
Video duration: 499 seconds Global video hits: 5239 forextradingseminar. com Be amused at how the herd of Forex traders keep trading without seeing the mystery of time and how to profit from it. |
 |
FOREX Metratrader 4 - How to add / install custom indicators Posted by: sionsmith
Video duration: 212 seconds Global video hits: 2634 www.fxtrainingzone.c om Video tutorial discusses the process of installing new indicators by hand into MetaTrader 4, without having to search for the correct installation folder. This is a very handy technique for people who have more than one installation of MetaTrader 4 (ie: with different brokers). |
| 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 |
