Moving average crossover trading strategy in forex
18
en.fxdailyinfo.com
  • 1
  • 2
19
7

Moving average crossover trading strategy in forex

Moving average crossover trading strategy in forex

What is the MA Crossover strategy in forex trading?

One of the most popular crossover trading strategies is the MA Crossover trading strategy. This trading strategy is based on moving average lines and their crosses. This strategy can be used for all currency pairs, although there are some differences in its application depending on the currency (e.g., MAs of different periods can be applied to GBP/JPY).

The essence of this trading strategy is to find any two MA lines with different periods. It is suitable for use on the chart timeframe, depending on the currency pair one day, 5 minutes, or 1-minute charts can be used. The general rules of its application are as follows:

In case you have chosen a “5 minutes” timeframe, then you can put a Buy-Sell order when the red line crosses upwards or downwards from the black MA one. In case you have chosen a “1-minute” timeframe, then you can put a Buy-Sell order when the red line crosses upwards or downwards from the green MA one.

To identify any MA lines one can, use a filter or indicator "Trend" in Meta Trader 4. However, you can easily identify them by visual inspection of graph drawings.

This strategy is very easy to trade and does not require special calculations for placing orders. You just need to place your Buy-Sell orders when the lines cross each other. If the trend is upward - buy, if it is downward - sell.

The idea of this strategy is in the fact that in most cases when a second MA line crosses a first one, this means that there is a certain reversal and therefore further price movement will be in the opposite direction. However, when they cross at right angles (90 degrees), then it does not always mean that the trend will reverse. It is better to wait and see what happens next, and only after it identify if this was a true cross or not.

Advantages of MA Crossover trading strategy:

This strategy can be used for beginners as well as professional traders; No need to perform Fibonacci calculations; This strategy does not require any additional indicators; It is easy to use and does not overload the chart with unnecessary information.

Disadvantages of MA Crossover trading strategy:

MA lines do not always reflect the market movement therefore it is better to wait for a true crossover before taking any actions; This strategy is suitable for scalping and intraday trading, but not for long-term trading; This strategy is better used on the D1 and H4 charts.

The promotion is published here only for an informative purpose, THIS IS NOT FINANCIAL ADVICE!
Forex Analyst

Fxdailyinfo.com

Fxdailyinfo have large portion of news for Live, Demo and weekly contest which is very helpful for all type of Traders. Broker houses offer Live contest

Recent Comments

Write a Comment

Related Bonus

65% FXChoice Bonus on Crypto Deposit
65% FXChoice Bonus on Crypto Deposit
02 December 2022 11:56 PM
FXChoice $30 Non-Deposit Forex Bonus
FXChoice $30 Non-Deposit Forex Bonus
30 November 2022 01:37 PM
50% FXChoice Welcome Deposit Bonus
50% FXChoice Welcome Deposit Bonus
30 November 2022 11:34 AM
Bull Sphere $30 Free Welcome Bonus
Bull Sphere $30 Free Welcome Bonus
29 November 2022 10:01 PM
RoboForex Welcome Bonus 30 USD
RoboForex Welcome Bonus 30 USD
29 November 2022 03:19 PM
50% Bonus on Each Deposit - OctaFX
50% Bonus on Each Deposit - OctaFX
28 November 2022 08:06 AM
$35 HotForex (HFM) No Deposit Bonus
$35 HotForex (HFM) No Deposit Bonus
27 November 2022 11:04 AM
25% Rescue bonus on your next deposit
25% Rescue bonus on your next deposit
25 November 2022 12:38 PM

Forex Featured Brokers

FXChoice

65% Crypto Bonus, Min: Deposit: 100 USD, Broker Type: STP/NDD,
50% Welcome Bonus

Start Trading View Profile »
OctaFX

Free Trading Signals, Broker Type : STP/ECN Leverage up to 1:1000,
50% Deposit Bonus

Start Trading View Profile »
HF Markets

Minimum Deposit $5, Leverage up to 1:1000 Broker: STP/ECN/NDD,
100% Trading Bonus

Start Trading View Profile »
RoboForex

Minimum Deposit $200, Leverage up to 1:1000, Broker Type: ECN/STP,
30 USD Free Bonus

Start Trading View Profile »
FXTRADING.com

50% Trading Bonus, Broker Type: STP/ECN, Leverage up to 1:500,
$600 Welcome Bonus

Start Trading View Profile »
ATFX

Leverage up to 1:400, Minimum Deposit $100, Broker Type: NDD,
50% Deposit Bonus

Start Trading View Profile »
65% FXChoice Bonus on Crypto Deposit
04 December 2022 02:54 PM
FXChoice $30 Non-Deposit Forex Bonus
04 December 2022 03:51 PM
50% FXChoice Welcome Deposit Bonus
04 December 2022 12:59 AM
Bull Sphere $30 Free Welcome Bonus
04 December 2022 03:52 PM
RoboForex Welcome Bonus 30 USD
04 December 2022 01:58 PM
50% Bonus on Each Deposit - OctaFX
04 December 2022 09:53 AM
$35 HotForex (HFM) No Deposit Bonus
04 December 2022 03:36 PM
25% Rescue bonus on your next deposit
03 December 2022 11:06 AM
ATFX $100 Welcome Credit Bonus
04 December 2022 01:24 PM
HFM $50 Forex No Deposit Bonus
04 December 2022 03:19 PM
FXChoice $30 No Deposit Bonus now
04 December 2022 03:52 PM
Welcome Bonus up to $500 ForexChief
04 December 2022 11:21 AM

Do you have forex new bonus or promotion?

Tell us your bonus or promotion FOR FREE. It is easier than you think!
Add Promotion!


moneta_footer.png
Best MT4 Broker
with lowest cost
Exclusive Access to
PRO Trader Tools
Free Trading
Signals
25% Rescue
Bonus New
Zero Swap Fees
on Gold