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Mister H when you first explained your simple 50sma/100sma you said that I should wait until the 50-100 are above the currency. Then when the currency goes above the nearest SMA to enter the trade if…
Mister H when you first explained your simple 50sma/100sma you said that I should wait until the 50-100 are above the currency. Then when the currency goes above the nearest SMA to enter the trade if the MACD was in agrrement. My problem is if the currency starts above the 50-100 how does it go above the nearest SMA whwn it supposedly is already above the two of them? Do I make any sense.
Thanks Ed
Thanks Ed
Posted on October 31, 2008 at 7:51pm — 1 Comment
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Remember though, this is a trend trading strategy. You CANNOT take every entry signal that comes along!!! You can only take entry signals in the direction on the trend!!! Go back and review the first paragraph of the strategy.........
"50 simple moving average - The signal line that triggers the trades.
100 SMA - Gives a clear trend signal.
The actual time period of the SMA depends on the chart that you use. This strategy works best on hourly and daily charts. The main premise of the strategy is to buy or sell only when the price crosses the moving averages in the direction of the trend."
To me ED, just looking at the 100 SMA on the 60 minute chart in EUR/USD tells me that the trend is still to the downside. I wouldn't even consider going long using THIS STRATEGY until it turns back up or until the 50 SMA crosses back above the 100 SMA.
As it looks to me right now.....there is entry signal. In fact, if the price turns back lower, I'd be watching to go short again.........
Hope this is making a little sense......because you can make crazy money once you learn how to trust the trends and have the discipline to ride them out to completion!!! If you have any more questions, let me know...