Often, timing trade exit at a loss or profit is the toughest part. This strategy, like many others using indicators, has a weakness — it may lead to whipsawing. That is, it may signal Buy only to signal Sell soon afterwards. This happens in times of sideways consolidation. EMA crossovers work best in trending markets.

BCH is an example of where this strategy would get whipsawed in a sideways trading range, without catching a substantial uptrend. EMA crossovers work on any timeframe , you can use lower time frames for shorter trades and higher timeframes for longer. Risk management — Stop Loss and trade size. In all of these setups, traders should use Stop Loss orders to manage their downside risk, in case the trade goes against us, as it often will.

Trading is about probabilities and even though these setups have a high win rate, one must be prepared to minimize losses on the trades that go bust. If Stop Loss order types are not supported by they exchange, at least set up a price alert see video. Keeping the trade size small allows the trader to setup a wider Stop Loss, which gives the trade more room and time to complete with success. Setting Stop Loss levels too tight can often result in getting knocked out of a trade prematurely.

Disclaimer : This content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. Hope it is to be an useful tip for trading improvement.

Using Multiple Moving Averages as Dynamic Support and Resistance Levels

All the best, Emil. Hi Rayner, thanks for sharing the complete guide to trend following appreciate your guidance cheers mate. Combine MA , CCI with price action and knowledge of market structure then you have an awesome trend following method that you can use to extract from the financial markets. This can be used on any instruments. Rayner has just shown you a simple way to trend trade, that only can improve your trading drastically. Do your homework, do your backtest, develop confidence in your trading ability then patience will follow and you are good to go.

Forget about the get rich quick strategy sold by scammers.

This is the way to trend trade, all traders I known who are successful trend follow. When you wait for the pullback and trade in the direction of the medium and long term trend, the price may go the opposite direction right? Also, can you elaborate what you consider as short term, medium and long term trend? A bit confused here. I did read the Adam H Grimes site that you had a link to on the complex pullbacks, unfortunately the explanation is rather confusing for me to understand. What are the qualifications for you to say that the trend have changed?

Like with the video where you presented the head and shoulder, the head part made at least 3 HH and looked like the with the MA the trend is changing. I daytrade, always out at eod, done overnites ,longer term and burn me bad, no more for me. Thank you for all your help Jay. Great introduction to moving averages. I use ADX to filter crossover signals but my personal best result is trading of simple pullbacks on 1H charts. I would say 1H and above is best. That is exactly how I thought as well so I binned all of them.

How to calculate the SMA

I have always been drawn back to averages and reading your article has convinced me to look into them again. Great article Rayner thank you. Hi Rayner, i would like to ask you if you ever tried to trade with renko or range bars. Please share with opinion about them. Hello Rayner. I base my entries off the 5 min charts, and use the 4 hr and 30 min higher time frames to spot the overall trend.

Also with that, I use the 20 ema. Thank you for sharing your insight.

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I love seeing what experienced traders are doing. Great help to those traders who really interested in trading like me. Thanks Rayner, I am learning a lot in all your articles. You have made excellent points on this post — very useful — thank you for sharing. Thanks for your help. That was a good explanation. For example the one on mt4trendindicator. Great post. More in this article than in many paid for trading systems! Thanks for sharing your knowledge.

You can use ma as a filter. Thank you, sounds very logic, another question please, how to scan the market for a pair with a strong Trend.. Thanks very for your comprehensive , excellent article. I have to read this article many times and paper trade it. Is there a direct link to download the proprietary trading spread sheet.

I like your video, simple and concise. Keep up the good works. As I am trying to work on my risk management and strategy, I have a few questions which I hope you can assist:. So in that case, how do we determine the entry point? In one of your video on Stop Loss, you said that we must not have a stop loss value, say dollars but let the price action determines where to put our SL. If I use Moving average strategy, where would the SL be?

Moving Average Strategies for Forex Trading

Once it is set, must I then fall back into my risk management to ensure it is within the limit? I often find on chart , it is much higher than the preset SL i want in risk mangement. Hi R ayner, thanks for the indepth Moving Average sessions. Keep rocking as always. Please kindly give me a feedback when you can.

How to Trade With The Exponential Moving Average Strategy

But if you want to have a MA appearing on the 15mins chart, then it would be MA on the 15mins timeframe. Hey, Reyner. How would you identify a trend when using weekly candle charts. If there is a downtrend in daily charts and the uptrend is still shown up on weekly charts, which one should be considered for decision making? Great insights as always! I discarded most of the indicators I kept on using before with no great success and used mainly MA for entries and exits, and it works a whole lot better!

All this info.

In 4 to 5 months I hope to be ready to make my lecturer proud.