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




28. How to Trade Candlestick Chart Formations Part 1 28. How to Trade Candlestick Chart Formations Part 1
Posted by: InformedTrades

Video duration: 323 seconds
Global video hits: 81235

www.informedtrades.c om The first lesson in a series on how to trade candlestick chart patterns for traders of the futures, forex, and stock markets.


Stock Trading Parabolic Sar Strategy Applied To The US Dollar Stock Trading Parabolic Sar Strategy Applied To The US Dollar
Posted by: StockTradingMaster

Video duration: 552 seconds
Global video hits: 5021

www.guerillastocktra ding.com (CLICK HERE FOR THE FULL REPORT AND THE 2 WEEK FREE TRIAL LINK I TALKED ABOUT IN THE VIDEO!) This Parabolic Sar strategy involves the use of the ADX indicator with the Sar to create a powerful swing trader tool. This powerful method can be used with any stock in any market.


Day Trading Chart of the Day: EUR/USD Forex Day Trading Chart of the Day: EUR/USD Forex
Posted by: pillartrading

Video duration: 270 seconds
Global video hits: 141

After the free fall last month the Euro has finally pulled together a decent run up. In this video we analyze the entry and exit points and key levels of upport and resistance for the pair. For more information on this chart and many others please visit us at our website.


Dean Malone Method 02 of 16 Dean Malone Method 02 of 16
Posted by: favoritehobby

Video duration: 599 seconds
Global video hits: 4473

Dean Malone's Metatrader indicator and template on heiken ashi combo system.


Richard Hill on 80\ Richard Hill on 80's trading day
Posted by: gabscevi

Video duration: 345 seconds
Global video hits: 16039

Richard Hill & Forex day


Chaos Theory, Fractals and Harmonic Trading Chaos Theory, Fractals and Harmonic Trading
Posted by: fxgroundworks

Video duration: 327 seconds
Global video hits: 7957

www.FXGroundworks.co m FXGroundworks alerts you instantly to the high probability trades through discovering harmonic patterns. These patterns proven in nature are also in the forex! Harmonic Magazine Link: www.fxgroundworks.co m/harmonicmag.html


Forex Money Management Strategies - Compounding and Avoiding Asymetrical Leverage Forex Money Management Strategies - Compounding and Avoiding Asymetrical Leverage
Posted by: TheProTraders

Video duration: 448 seconds
Global video hits: 2075

Get Your FREE Course Here! thebestforexsystemin fo.com Implement a good Money Magagemet Strategy is extremely important to make money in forex, learn how compounding and using "micro" accounts can help you grow your account quick and safe! Special thanks to Sean, the author of this video. www.seanwyseman.com


Dean Malone Method 03 of 16 Dean Malone Method 03 of 16
Posted by: favoritehobby

Video duration: 599 seconds
Global video hits: 5030

Dean Malone's Metatrader indicator and template on heiken ashi combo system.


Good trading methods work on anything! Good trading methods work on anything!
Posted by: Synergy4Trading

Video duration: 371 seconds
Global video hits: 18549

A solid method should work on every market and timeframe, not just on a 4 hour chart or on one symbol. For more information check out www.synergy4trading. com


lire les indicateurs de centre de gravité lire les indicateurs de centre de gravité
Posted by: Forex7trading

Video duration: 561 seconds
Global video hits: 5695

pour lire les graphiques de Forex De Mr belkhayate


No Loss Robot Demo by Driven2Success - Currency Shown GBPUSD No Loss Robot Demo by Driven2Success - Currency Shown GBPUSD
Posted by: videod2s

Video duration: 261 seconds
Global video hits: 3931

No Loss Robot that trades Forex and has yet to experience a loss trade.


Forex Candlesticks Made Easy! Forex Candlesticks Made Easy!
Posted by: ForexCandlesticks

Video duration: 281 seconds
Global video hits: 12376

Watch how I made $400 in 30 minutes :) ForexCandlesticksMad eEasy.com


Strategia di trading per il Forex Strategia di trading per il Forex
Posted by: WorldstocksItalia

Video duration: 565 seconds
Global video hits: 10773

Semplice tecnica per fare trading con il Forex.


Million Dollar Traders - 10/18 Million Dollar Traders - 10/18
Posted by: forexnerd

Video duration: 594 seconds
Global video hits: 37591

50% Forex Bonus Promotion: www.hotforex.com


Gann Fan in Forex Gann Fan in Forex
Posted by: autopro2008

Video duration: 265 seconds
Global video hits: 19880

Using www.conceptforex.com software for esignal charts


CMS Forex \"The Arena\" CMS Forex "The Arena"
Posted by: personafilms

Video duration: 60 seconds
Global video hits: 17955

The US Dollar, the British Pound, the Japanese Yen and the Euro fight it out in the middle of a coliseum packed with currency traders.


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