Interesting Moving Average Strategies

YouTube video containing a few interesting long term moving average strategies…

Will be helpful for those that are searching for set and forget simple strategies…

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Take with a pinch of salt. If it was that simple, we’d all be millionaires and these guys wouldn’t need to be touting Vlogs on YouTube.

@steve369, Yep, true… Just like 98.7% of the posts here in BabyPips…

It may give insight to new traders who are smart enough not to follow the usual FX Education waffle.

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I doubt that would be their mindset. Trouble is, they have been incited by broker media pictures showing young smiley faces pressing buttons on their phone apps, and then believe making money is easy.

Articles like this should have a warning attached, because that’s more of a responsible way of learning how to trade Forex. Once the basics have been learnt understood and tested, yes, these Vlogs are an opportunity to experiment with differing strategies.

So, in essence, I’m not debunking these Vlogs, just making noobs aware to take them with a pinch of salt until they know better how to trade.

Do you consider it worth mentioning that all these five methods are intended for use with stock market indices such as the S&P500, where the obvious assumption is that the underlying market direction is always eventually upwards? Therefore we only need to step aside whenever there is a dip until the upmove reconvenes and then re-enter.

The indices are like a single commodity whereas a currency pair is two commodities, each of which is capable of moving significantly in a particular direction. Therefore would you suggest that one just picks one currency such as USD and apply the same approach of buy/exit/buy/exit etc (for example using a basket instrument) or to adapt these strategies for currency trading into a buy/sell/buy/sell instead where either currency in the pair is capable of a significant move?

Personally, I would intuitively be very skeptical of this type of simple buy/sell crossover methods with currency pairs whether is just price crossing the MA or an actual MA crossover.

But I have never experimented with such long term MAs over long periods so I am only asking the question here. I accept that these can work almost by definition on ever-increasing stock markets, but can the same be anticipated with currencies that do not (often) have the same unidirectional properties?

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Indices, Commodities, metals, Crypto’s can all be traded in these CFD Markets…

For those that take the time to watch the full video posted above, it confirms that the price crossover of the MA200 is the most profitable strategy for long term setups… Having software backtested many, many strategies containing MA’s, I have also found around MA200-230 (Price Over) to be a solid and simple strategy to trial… Even on Currency Pairs…


GBPUSD Daily Chart - Some big moves were available even in 2020

Also a strategy mentioned in NNFX’s comprehensive video series.

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Thank you for that addition :slight_smile:

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exactly - a very big “pinch” of salt

exactly - and a very prominent warning

i couldn’t agree more

moving averages and their crossovers certainly have some helpful uses (e.g. for trend determination and identification), but trade entries aren’t among them - countless academic research has been done and books have been written explaining why in full detail, but sadly there are still people (probably those who haven’t read them and don’t intend to) naive enough to believe the contrary

that’s the world of trading for you

you make a very good point, above, about stock markets, SovoS

to trial for trend identification, maybe

not so much for trade entries

personally, i’ve always found that whether MA’s are rising or falling is actually far more significant than whether the price is above or below them

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If I recall correctly, this is one important criterion in the trading decisions of @tommor.

And, of course, that is totally logical. The MA is based on the average value of the preceding series of prices prior to the current price (excluding the current value) and progresses like a moving window as each bar completes. So if the MA is rising or falling it shows an overall directional bias within recent prices compared with earlier prices, i.e. a trend.

The remaining question then is how long that bias will continue for. As usual, exiting is far more significant than entry since it is where one exits that finally determines how much one ends up making or losing from the trade.

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absolutely

one of the great difficulties involved in trying to learn forex-trading from forums is that some tend to be populated by posters who make either a tacit or even an express assumption that entries are the most important parameter

in reality, of course, this is far from true!

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I really enjoy watching stuff like this. Even though it may not work for me right now, it gets the wheels turning. MA cross strategies can work well, especially in a trending market.

The point of this is it’s sometimes better to go in and out of trades rather than simply holding long-term. But as traders this is what we typically do anyways.

One strategy that I have in my playbook involves a 200 SMA on a 1H chart, showing about 3 months worth of price data.

The idea is to enter when price crosses the 200 MA, with your SL below the current swing low. If you manage to catch a good trend like this one, then you keep moving your SL up as price forms new higher lows. What will take you out of the trade is when price breaks the HL pattern, which by then you are already into some decent profits. If the trend resumes then price will cross the 200 SMA again for a new entry.

Here’s an example using EURUSD:

With a wider SL you could push through this dip and wait for the trend to resume, but, if it doesn’t then you’ve forfeited some extra profit.

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@MattyMoney, Exactly, “getting the wheels turning” that’s the whole idea of this thread, get new (and old) traders thinking about the bigger picture when trading these markets… Granted 2000 - 2016 takes bigger picture to a whole new level…

I only post on topics these days that I believe helps traders think for themselves, " Here is something which I think might be of interest, have a read" for those maybe trying to find their way.

I refuse to say you must do this, or must do that… there is enough members here already to pounce on threads with their own opinions right or wrong…

A quote from a post in November 2020 about using Indicators… Which had nothing to do with “Buy & Hold Investing”… the lazy investors methodology… against using a combination of Moving Averages.

A Stock Market concept that can be easily applied to ANY CFD traded instrument…

I displayed a sample of the current GBPUSD on the Daily, @MattyMoney supplied a great demonstration of the OP strategy on the current EURUSD on the Hourly… Both simple stress free methods to trade.

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A perfect real-time example of price over the MA200… (See Post Below)