100 SIMPLE MOVING AVERAGE TREND LINE BREAKOUT STRATEGY

The 100 Simple Moving Average (SMA) Trend Line break strategy is a simple yet effective strategy to trade forex profitable. Ofcourse, you need to know how to draw a trend line before applying this strategy to your advantage.
Trading Tools/Settings
Used Indicators: 100 period Simple Moving Average
Analysis tools: Trend Lines
Time frame(s): All
Trading sessions: All
Currency pairs: All

Trading Rules
Buy Trade: Go long when the currency price trades above the 100 simple moving average and the price closes above a falling trend line from below. Place your protective stop-loss below the most recent support. Take you profit at 1:2 risk to reward ratio or better (or use any other TP method).
Sell Trade: Go short when the currency pair trades below the 100 simple moving average and the price closes below a rising trend line from above. Place your protective stop-loss above the most recent resistance. Take you profit at 1:2 risk to reward ratio or better (or use any other TP method). See pictures for clarification.

http://www.dolphintrader.com/wp-content/uploads/2013/06/sma-strategy-trendline1.png

Comments

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