Power of Trading
Discover a simple yet effective trading strategy using moving averages as dynamic support and resistance zones. Risk only 4% per trade and potentially gain 58% in 30 days. Can be used on multiple time frames and profitable with just one currency pair. A win rate of 61% was achieved in a 100 trade test. Adding another indicator, such as the SMAs, can further improve its accuracy.
Revolutionize Your Profits with this Simple Trading Technique
Introduction
Are you tired of complicated strategies that don’t seem to work? Do you want to take your trading to the next level? In this article, we will introduce you to a game-changing technique that has the potential to skyrocket your profits and simplify your trading strategy. Using just three moving averages and some basic candlestick analysis, you can easily identify highly profitable trades. This technique is so straightforward that you won’t need any other strategies after this. Let’s dive in and learn how to improve your trading game.
Setting up Your Chart
The first step to applying this trading technique is to open the tradingview.com website and select the GBP USD currency pair. We will be using the 30-minute time frame for our strategy, but you can use this method on five-minute and one-minute time frames as well.
Using Moving Averages
Moving averages form the basis of this trading technique. They help traders identify profitable trades and reduce false breakouts. We will be using three moving averages with different length settings that act as dynamic support and resistance zones. Using all three moving averages together is crucial for this strategy to work effectively.
A Winning Strategy
Once you have set up your moving averages, the next step is to find trading setups. To enter a trade, the price must cross the moving average zone from above to below, which indicates a change in the bullish trend. A basic knowledge of candlestick patterns will help you identify high momentum candles, which will distinguish a reversal from a retracement. For this strategy, it is essential to manage risk effectively by risking only two percent per trade. A one-to-one ratio for the first profit target and a one-to-two ratio for the second target are recommended.
Testing the Strategy
After collecting one month of price data and analyzing 100 trade signals, we found that this strategy has an impressive win rate of 61 percent. The most wins in a row was nine, while the most losses in a row was two. Overall, the gain on the account was 84, which means that if you had a one-thousand-dollar account and followed this strategy, you could have made at least eight hundred dollars in profit using only one currency pair.
Improving Accuracy
To improve the accuracy of this strategy even further, you can use additional indicators in combination with the moving averages. Adding indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator (SO) will help eliminate fake signals and improve the accuracy of your trades.
Conclusion
In conclusion, this strategy is a game-changer for traders who want to simplify their approach and improve their profits. By using only three moving averages and some basic candlestick analysis, you can easily identify highly profitable trades. Remember to manage risk effectively and use a conservative risk management approach. Additionally, use additional indicators to improve your accuracy and stay ahead of the game. With this strategy, you can expect to see real results in a short amount of time.
