The Moving Average Trading Strategy That Works for Any Market
In this article, I will cover the moving average trading strategy which you can see in the form of bands. These bands are very realistic in nature and can bring highly profitable results. The indicator uses bands in order to find key support and resistance levels and potential reversals in the trading market.
How to Attach the Grahn Gyllene Kors [Alerts]?
You need to visit tradingview.com and search for Grahn Gyllene inside the indicator database. Attach the one that is uploaded by Allanster on Trading View. You can check the name of the indicator and the author’s name in the attached image.
What is this Simple Moving Average Strategy Indicator?
This indicator by Allanster uses trading moving averages for trend reversal. If you look at the indicator in the image it looks like bands. The indicator finds the key levels to enter and exit from the trades. These bands work like support and resistance levels and help us to find potential shifts in the market direction.
Understanding the Bands
The upper band works like a resistance. You can see we have yellow color bands and one band in green at the top. This is the most strong resistance. The lower red band represents the oversold area of the market. The market normally plays in between these bands.
How to Trade with this indicator?
This moving average scalping strategy is very easy. If you see that markets are normal (not trending) then you can buy below the yellow bands and sell above the yellow bands. It is important to find reversal candlestick patterns to confirm your trades (for example Hammer, doji, etc)
Trending Markets Trading Strategy
In the last paragraph, we have discussed the normal market conditions. Now just assume that we see a trending market pattern. Now we will use this indicator differently. For example, in the vertical downtrend, you should keep it selling on the retracement from the 2nd or 3rd yellow moving average. You should not buy in downward trending markets and vice versa for the upward trend.
This moving average trading strategy is very powerful for scalping and day trading. It can make you a better trader by following the rules explained in the article. Good Luck!
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