Simple Trading Strategy For Simple Trader
The advantages of a trade strategy are not depend on how difficult the strategy is or how many technical indicators there are. But, it is often a simple trading strategy with one or two profitable indicators. Here we will uncover how that simple trading strategy work.
As trader, we know “Moving Average” right? This is the most simple technical indicators that can be found and installed easily on all trading platforms, including Metatrader4 (MT4). And it is also very easy how to use moving avarege. Here is how to install it, we only installing some MA on the platform, each with a Period and a different color. For example, Period 5 (MA-5) and Period 20 (MA-20). Note at the intersection between the two MA’s to get a trading signal.
But remember, we must be on the rule track. Here is the rules : We get Buy signal, if the MA-5 moves across the MA-20 towards the top. And we get Sell signal, if MA-5 moves across the MA-20 towards the bottom. In this case we can arrange the Target and stop loss accordingly . For example, to determine pips the particular, for example 10-25 pips from the open price position (OP).
Bollinger Bands Strategy
We know that Bollinger Bands is a tape measure of price volatility which is usually mounted flanking the line of the Simple Moving Average (SMA). In this case when the ribbon Bollinger Bands above and below Simple Moving Average (SMA) narrows, its means a significant price move will happen soon. The first step for running this trading strategy is by install Bollinger Bands. We can see the picture below after bollinger attached. Bollinger Bands bearing the EUR/GBP timeframe 2 Hours (H4) to set the period of the 20-Day Standard deviation of 2. We must remember the rule condition, Bollinger Bands are narrowed, is approaching the Simple Moving Average (SMA) and the price position in the middle. Then, we can Buy, if there is a candle fully enclosed in the top of the SMA line. Or we can sell if candle closed completely below the SMA line. So, It is the simplest way to use Bollinger Bands.