Does anyone use a 50SMA retracing method where you wait for the price to cross, then on the next retrace you buy or short accordingly? Just wondering whether successful or not. I know cdawg uses something similar on the 15min GBPJPY but that’s a little more volatile.
An example 1 hr chart attached (yellow 50 SMA, red 200SMA)
Hey, I am using this method, 1 MA on close exponencial. I will get a screenshot later tomorrow.
looks interesting, what about the crosses before that first cross? what would happen there? Also thrid sell down counting from the first one on the left. that one doesnt touch the 50ma so that wouldnt signal a sell would it?
You probably wouldn’t do anything with those as the angle of the SMAs is flat showing that the market is ranging. I don’t think this works well in a ranging market as price is just going to go up and down and up and down.
Even if this is a 50:50 strategy it should be profitable in a trending market with good money management. I’d like to back test it though because some people don’t seem so sure.
Note on the above, you would probably have gone short on the exit only to be stopped out.
Now, my worry as with all indicators as that this looks brilliant in hindsight yet at the actual time the indicator might have been way off the price.
Also thrid sell down counting from the first one on the left. that one doesnt touch the 50ma so that wouldnt signal a sell would it?
Strictly speaking it didn’t touch so you wouldn’t do anything but the candle pattern looks very bearish so perhaps. 
From my brief look seems to work best when the angle of the 50SMA is near the 45 degree mark.
Hi guys, this is how I use MA 50 effectively. I have a simple setup in 1 hour chart, what I do is I draw the trendline and then look for an entry. THe MA 50 sometimes will cross late and that gives me a late entry which I miss out alot of pipitas, so I use the Fractals. You will see in the image that I have indicated the MA 50 line and Fractals line in the 1hr chart with 2 trendlines showing me where the price is moving. Which ever the price first breaks(either the MA 50 or Fractals) I use as S/R line. So in this example the Fractals line broke first and I entered right at that line. There will be set ups where the price breaks the MA 50 first but when that happens you have to make sure that it is breaking at the same time as on the 15min chart, sometimes it could be couple of candles off but usually when price will move either direction, the price breaks the MA 50 in the 1 hour and 15 min charts at the same time, this only works if you draw a nice trend line or S/R horizontal lines.
I have discovered this one 3 weeks ago it is fairly new but I had a great success with high 95% trade accuracy, the only time I lost when I aimed for more pips. Yesterday the beggining of the trading week I had 5 trades all winners totalled out to 138 pips could of been more but I just didn’t wanted to leave it over night and closed them for less pips. Today I am in on 4 trades and so far 250 pips totalled. These trades are all with different pairs.
