Hi, I’m still new in forex. I’ve tried using moving average (MA) to determine forex trend. I’ve plotted 2 MAs, 10 and 20 in my MT4, based on H1 period. Yesterday, I looked at the chart and choose to buy once the 10 MA is above 20 MA. It worked yesterday. I try the same strategy today, but then I suffered huge loss. Please help.
you need to look at the bigger picture not just when 2 ma’s cross each other…
In super basic the trend is changed from an uptrend to a downtrend when there are more bears than bulls.
How do you know when there are more bears than bulls? That can be written 1 million books about… there’s so many ways to look at that… indicators… price action… news etc.
I would suggest to begin looking for support and resistances but that’s just the top of the ice berg…
You simply have to keep learning about how to use all tools available to you in forex… about price action and everything else and then use what you think makes most sense to yourself… there’s so many different approaches to trading successfully.
Trading based on one single signal is not the best approach and just because something worked one time or even multiple times does not mean it is a strategy. You should have hundreds if not thousands of trades to get quality feedback. Suffering a huge loss points towards a totally different range of problems, primarily risk management.
Hi, What kind of trading strategy should I use? I’m still new to this. By the way, actually the huge loss is in just a demo account. I’m not ready to trade with real money yet.
The most accepted definition of a trend are higher highs and higher lows. Opposite for a downtrend.
-P
Hi all,
I look at four different aspects and ensure that all four match before making a trade.
I only use H4 and D1 time frames
1- Is there a trend
2 - Price Action - Respect to the EMAs -I use 8, 20 and 50 EMAs
3 - Cycles - Make sure there has been at least two cycles with trend
4 - Angle and Divergence of the cycles
If all four are showing then I trade!
I only use 1% risk and 1% reward ratio - Low risk strategy
I have found this quite successful and running at a 75% success rate
Can anyone add anything to this?
Danny
Froget about 20, and 10 sma, too many false signals.
If you want a more realiable moving average use the 50sma. Open a EURUSD chart, place a 50sma. If the price cross the SMA up, start looking for long entries. IF the price crosses the SMA down, start looking for short entries.
Take a look at the 3 ducks thread. It uses 60 sma in 3 timeframes.
Dont often see posts on here saying losing in demo, usually newbies do well in demo and expect the same when they go live.
given the comments here, I’m doing a lot of things wrong. I’ve always relied on news to determine what I’m going to buy - whether it is trading stocks or currencies. If there is no news, I don’t buy. If there is negative news, I buy. I only buy when there is positive news. So, I never get to really earn much on trading - but then, I’m also not looking to get rich quick. 