Trading Strategy

Simple Trading Strategy: Cross Over Moving Average

January 10, 2020 | 9:22 am | The 5%ers' Blog > Trading Strategy
January 10, 2020 | 9:22 am
The 5%ers' Blog > Trading Strategy
Simple trading strategy called the cross over moving average.

This is a very efficient and simple trading strategy which includes a few tools and indicators. I call this system the crossover moving average. It includes two moving average EMA, Stochastic oscillator and RSI (relative statistic index) all combined. This gives us the signals to buy and sell and to exit from a position. It is a simple trading strategy because it keeps the trading simple and clear.

First we must add all the tools that we use in this system like so:

do it twice:

  • period: 5; ma type: ema
  • period:10; ma type: ema

 

Next, we’ll set the RSI:

period: 14; Levls: 30,000, 70,000, 50,000

 

For the stochastic – 

%K period: 14; %D period:3; Slowing: 3

 

In order to get a signal for buy position in this system we need that all conditions will come at the same time. First we should see the short EMA crossing the 10 EMA. If the short EMA  crosses the 10 EMA from below to above, that’s our signal to buy, but we also need to check that the RSI is above 50, which means the price is in positive momentum and we would like to see the stochastic move upwards.but not over the 80 value.

This kind of setup is a good signal for buying positions. 

there are two possibilities for this position to get a signal to exit from this position.

  1. If the moving average will cross back from up to down. 
  2. If the RSI gets back below the 50 value.

I would advise you to always combine this system with another price action pattern and any indicators you have.

 

Click here for our complete guide – Supply and demand forex the highest accuracy method

If you want to receive an invitation to our weekly forex analysis live webinars.
Sign up for our Newsletter.

Subscribe to our youtube channel

Click here to check how to get qualified

Click here to check our funding programs

Share:

WE FUND FOREX TRADERS!

The5%ers let you trade the company’s capital, You get to take 50% of the profit, we cover the losses. Get your trading evaluated and become a Forex funded account trader.

Get Your Forex Funded Trading Account

Your message is underway!

You will be hearing from us shortly