The Moving Average trading strategy is one of the simplest and it is very easy for beginners. Every new trader needs to know how to use this indicator. There are two ways it can be used. However, note that this strategy can only bring you little profit. Notwithstanding, you need to start small and work your way up. So do not ignore trading on MA. It is easy to use and gives clear trading signals.
You can use a Demo account for testing. As for me, I prefer a Live account. When testing a new strategy, I just open a $5 Micro account with Profiforex. This gives you $10 = 1000cents plus 1:500 leverage, which is enough to do some practice Live. It has its advantages.
The First Strategy on Moving Average
Insert the Moving Average to your Chart (Period 30). Every other parameter remain the same
When the price is higher than the MV, it is a bullish trend.
When the Price is lower than the MV, it is a bearish trend.
[B][I]The signal to buy occurs when the price crosses the Moving average from the bottom upward
The signal to buy occurs when the price crosses the Moving average from the top downward.
You can learn how to do this effectively with a practical video
Trading On Moving Average Tutor
The Second Strategy on Moving Average
The one requires two moving average with a different period.
Insert the first moving Average (Period 50). Other settings remain the same
Insert the second moving Average (Period 15) choose another color. Other settings remain the same
The Signal to buy occurs when the moving average with a shorter averaging period crosses the other with a longer averaging period from the bottom upward. If the shorter MV is crossing the longer MV downward, we place a sell order.
Instead of the price line crossing the long term moving period, we use the short term moving average.
Most likely you would need a practical demonstration on how to use this strategy.