Forex Trading Videos

Home

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

Fibonacci - Technical Analysis - Currency Forex - Fx Trading - Daytrading - Retracement - Signal Trading - Forex Training - Demo Trading - Forex Trading Platform

Other videos by this author:

	Dish Demo: Floyd Cardoz Makes Chicken Tikka Masala Posted by: NewYorkMagazine Video duration: 112 seconds The executive chef of North End Grill prepares the popular British dish.

	Dish Demo: Brooks Headley Makes Sweet Grilled Eggplant Posted by: NewYorkMagazine Video duration: 140 seconds With chocolate chip ricotta and cookies.

	Beyoncé, Coco Rocha, Tim Tebow and more at the 2012 Met Gala Red Carpet Posted by: NewYorkMagazine Video duration: 262 seconds At this year's Costume Institute Gala, models, designers, and celebs were talking about which dead person they'd like to interview, and who they want to see in a fashion cage match.

	How to Act Human: James Lipton's Advice for Mitt Romney Posted by: NewYorkMagazine Video duration: 277 seconds The host of 'Inside the Actors Studio' offers the presidential candidate some words of wisdom on how to act more authentic. Read Lipton's full piece here: http://nymag.com/dai ly/intel/2012/05/how -to-act-human-lipton s-advice-for-romney. html

	Exhibit Tour: Prada and Schiaparelli at The Met Posted by: NewYorkMagazine Video duration: 145 seconds Curator Andrew Bolton walks us through this year's exhibit by the Costume Institute, "Impossible Conversations," imagining a discussion between Miuccia Prada and Elsa Schiaparelli.

	Dish Demo: Shaun Hergatt Makes Poached Eggs with... Posted by: NewYorkMagazine Video duration: 156 seconds The chef teaches us how to make a perfectly poached egg.

	Dish Demo: David Bouley Makes Paella Primavera Posted by: NewYorkMagazine Video duration: 113 seconds The chef prepares a paella with vegetables and no time in the oven.

	Dish Demo: Chili-Asparagus Salad with Jean-Georges... Posted by: NewYorkMagazine Video duration: 137 seconds The chef demos a spicy spring salad.

	The Cut's 'Inside the Model's Studio': Andrej Pejic Posted by: NewYorkMagazine Video duration: 294 seconds Andrej Pejic on Transgender Models, Working at McDonald's, and Winning Prom King (and Queen!)

	Dish Demo: Jacques Torres's Chocolate Truffles Posted by: NewYorkMagazine Video duration: 97 seconds Mr. Chocolate himself demonstrates how he makes a world-famous treat.

	The Cut Field Tests Peplums Posted by: NewYorkMagazine Video duration: 119 seconds What do people think of this new flowery trend? We borrowed some runway looks and hit the streets to find out.

	Video Style Portrait: Fashion Blogger Peony Lim Posted by: NewYorkMagazine Video duration: 85 seconds Fashion blogger Peony Lim discusses the difference between taste and style.

	Video Style Portrait: Stylist Donald McFarlane Posted by: NewYorkMagazine Video duration: 77 seconds Stylist Donald McFarlane explains the difference between fashion and style, during London Fashion Week.

	Video Style Portrait: Student Amanda Jane Givens Posted by: NewYorkMagazine Video duration: 79 seconds Amanda Jane Givens describes how art translates into fashion.

	Video Style Portrait: Blogger Angelica Ardasheva Posted by: NewYorkMagazine Video duration: 83 seconds Fashion blogger Angelica Ardasheva explains the influence of her Russian culture on her fashion sensibility.

	The Cut: 'Hunger Games' vs. Runway Makeup Field Test Posted by: NewYorkMagazine Video duration: 165 seconds Are these makeup looks from The Hunger Games or the fall Runways? The Cut finds out who who knows their Effie Trinket from their Karl Lagerfeld.

Casting NYFW with James Scully - Part 3, Backstage Posted by: NewYorkMagazine Video duration: 235 seconds In his final installment, casting director James Scully reports from the backstage madness at Oscar de la Renta, Derek Lam, Jason Wu, and Carolina Herrera. He manages to capture some delightful moments with Daria Strokous (fashion week dreams!), Cara Delevingne (they're getting fake-married soon!), and the always hilarious Hanne Gaby Odiele (who really enjoys yelling).

	Model Diaries: David Chiang Eats His Way Through Men's Fashion Week Posted by: NewYorkMagazine Video duration: 121 seconds He might have a future as a food critic.

	Fashion Week Confession Booth: Part Six Posted by: NewYorkMagazine Video duration: 129 seconds "What's the craziest thing you saw at New York Fashion Week?"

	Fashion Week Confession Booth: Part Five Posted by: NewYorkMagazine Video duration: 84 seconds The best, worst, and sleepiest.

	Fashion Week Confession Booth: Part Four Posted by: NewYorkMagazine Video duration: 101 seconds The Cut parked a video booth at Made Fashion Week to hear what all the show-goers had to say.

	Fashion Week Confession Booth: Part Three Posted by: NewYorkMagazine Video duration: 104 seconds The Cut parked a video booth at Made Fashion Week to hear what all the show-goers had to say.

	Fashion Week Confession Booth: Day Two Posted by: NewYorkMagazine Video duration: 100 seconds The Cut parked a video booth at Made Fashion Week to hear what all the show-goers had to say.

	Fashion Week Confession Booth: Day One Posted by: NewYorkMagazine Video duration: 107 seconds The Cut parked a video booth at Made Fashion Week to hear what all the show-goers had to say.

	Back of the Benz: Joanna Hillman and Sam Broekema of 'Harper's Bazaar' Posted by: NewYorkMagazine Video duration: 159 seconds We gave the editors a ride to their next show while discussing Alexander Wang and Marc Jacobs.