Three Methods on the Forex Moving Average Indicator
One of the most popular forex indicators is the Moving Average. This indicator is not profitable when prices move volatile or sharp, this is because this MA forex indicator repaints. Most of the signals that appear from this forex indicator will be too late to anticipate. However, there are a number of more extreme trading methods and do not use a Moving Average for more accurate trading signals. Please follow the article about the following Forex Moving Average Indicator.
Method 1: Moving Average is used for bounce
The first method is to use trends, and enter them when prices wait to return to the moving average level. This signal appears when the moving average is trending and not in trend. When a signal appears the price will bounce off the area. By combining trends at important points or levels, you can find out the direction of trends with a low level of risk but high accuracy.
Method 2: Moving Average to Detect Trends
By using a moving average, traders can determine whether the market is in a trending or sideway condition. To do this, all we do is see the slope angle of the moving average. If it is flat, it means that the price is in that range in a sideways state. If the angle is in a certain slope, it means that the price is in a trend.
Method 3: Bunny Girls
The Bunny Girls method is a bounce method with special filters that can do and cause trading to be very accurate. We will place this method when the price exceeds the level we have set. This serves as an additional confirmation when prices move when a strong trend occurs. This can increase and increase the accuracy of up to 90%, so this strategy is quite widely used.
In conclusion, moving average indicators, although a little less attractive, are indicators that can provide a very good signal on many forex, stock and commodity pairs. Only by using the three set-ups above described in this article can you find a strategy that can begin to provide benefits when entering the market quite easily and consistently.