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To Trade, you just need a simple Moving Average

We tend to believe that trading is an activity for professionals and that we need particular knowledge to invest, that goes far beyond those described in the websites. Although for some types of trading this statement is true, there are types of investments for which you just learn one simple rule and apply it always, almost mechanically.

Many are always looking for the perfect strategy, the infallible one, that promises easy and consistent money, then you run in search of some new modern indicator that can meet this demand.

It seeks to combine an exaggerated amount of indicators, estimating cycles, you make detailed market analysis and then lose all the money after a few days due to euphoria and recklessness. Of course, if you choose to do the job of the trader, then, you should analyze the daily market to catch all opportunities that could be presented, but if you invest because you decide to increase your own capital over the years, then, it's not necessary any sophisticated indicator, just a simple moving average.

The moving average satisfies the long-term investor, ie, the one who wants to increase its capital over the years, to have a certain sum in date x, or just because he doesn't want his saving rotted.

To follow this simple strategy is necessary to observe from time to time the market, to invest only when we are in the presence of a well-defined trend and wait again for the securities to hole their moving average.

The moving average satisfies the long-term investor, ie, the one who wants to increase its capital over the years, to have a certain sum in date x, or just because he doesn't want his saving rotted .
To follow this simple strategy is necessary to observe from time to time the market, to invest only when we are in the presence of a well-defined trend and wait again for the securities to hole their moving average.

HOW TO SET THE STRATEGY

  • The moving average to use is the one of 60 periods.
  • The graph has to be set with time frame D1.
  • It is a buy signal when the price holes the moving average from the bottom up.
  • It is a sell signal when the price holes the moving average from top to bottom.

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