if you use 10, 21, 50 or 10, 21, 68, or 11,21,68, it doesn't matter that much. The concept you should really be understanding is the trend. I'm making an assumption you want to trade a trending market and not a ranging market.
If trend trade in a ranging market, you will get crushed.
This is a very basic technical indicator and when the 10 is above the 21 and the 20 above the 50, it confirms that a strong trend is occuring and you can enter a trade when the 20 finally goes above the 50. You might want to wait for a small retracement.
Now, that part is easy. Its just moving averages, but if you are going to trade trends (100 to 200 pips), you can expect that you will be stopped out of many trades before you get a trend that makes you money. This is where most new traders fail. Some trend traders will win only 20 to 30% of the time.
On average when I use this technical setup, I will get stopped out about 3 times before the trend takes off. my average on a 15 minute chart is about 100 to 150 pips. I will usually set a stop loss at about 15 to 20 pips depending on price action. So at the end you will have a 40 to 50 pip gain.
over a period of time your trading can look like this (out of 10 trades). 5 trades at a loss, 2 trades break even, 2 trades 20 to 30 pips, 1 trade 100 to 150 pips.
Now, you will get lucky and get a trend that goes 300 to 500 pips but its very unlikey.
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