FOREX STRATEGY “CHARIOT TECHNIQUES” BASED ON MOVING AVERAGE

Only one indicator – Moving Average (MA) at closing, which is the period used in the trading process using this “Chariot” strategy is 40.

Any currency pair, as well as any time span, which covers from one hour to one week, will fit this strategy. This strategy is more suitable if used with a longer time span.

A situation is a time when prices move up slowly, which often occurs in the trading process. Although this also happens when prices have large movements in the opposite direction. This trading strategy is designed to be used for swing conditions like this, when the market falls or rises. Although this trading strategy looks very simple, it is considered quite effective. Very effective if prices move sideways or on trendy markets that move in general up / down.

Location of MA indicators in the terminal

Location of MA indicators in the terminal

MA indicator settings

MA indicator settings

It is recommended to use this strategy on the weekly chart. But it can also be used on intraday and daily price charts.

Trading Rules Based on Moving Average

The trading rules are very simple. If the price is above the Moving Average, you should open a long position. In this case, there is no short position opened.

If the price moves in a flat condition and the range is close to the moving average, it is not recommended to open new positions.

In a situation, where in the graph, the first candle exceeds the moving average (MA). Which closure occurs at the top of the price range, so you should do the following:

open a position on the first candle bar, at least when the price is more than 80% of the length of the candle stem in the moving average. if the price closes in the upper third of the price range;

open a long position when the price breaks the top of the candle stem, which is relevant to this character. The stem of the candle is considered as the entry candle stem.

While the balance of prices is at the top and bottom of the Moving Average. The opportunity to enter the market is available after the price “dips” out of the moving average (MA). If the candle stem before the candlestick entry is located on the Moving Average and the closing occurs in the upper half of the price range. This is a signal that you are ready to open a long position, but you should just enter the market when the price breaks through the top of the candle stem.

The position to buy should be opened if the price is above the moving average (40) and short position – below. For starters, this strategy will only involve long positions.

Setting the MA indicator on the chart

Setting the MA indicator on the chart

 

Stop Loss, Take Profit, and Trailing Stop

Stop Loss is best placed at the level below a candle stem before the candle stem enters. Take Profit does not need to be placed as well as using Trailing Stop. The bigger the time scale, the greater the value of a trade. A similar choice – is to close a part of the position, with the standard of development and the Fibonacci level, which is placed near it.

Add additional indicators.

Before opening a position, it is necessary for traders to analyze the price schedule and ensure that there is a price reversal in the SMA (40). It is best if the swing width (amplitude) of the reversal occurs to the maximum. Because this is a new sign of a consolidation. Look for a tendency that is not too strong, not greater than 45 degrees. Under conditions of a greater tendency, the price slope will be similar to the movement of the SMA (40). When prices move away from this picture, it’s better not to open any position. The essence of this strategy is to follow a trend right when the trend starts. To avoid a delay, you can use the ADX oscillator in addition.

Everyone chooses the strategy that is most suitable for him. However, in any situation, you should try all the popular and general strategies, because you will find the right strategy to get yourself to earn a steady income.

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Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.
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