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  1. #1
    Legendry Member Michael Hodges's Avatar

    The Geeks Simple Moving Average Strategy !!!

    This is part of my personal trading strategy. I've opened this thread for anyone who would like to learn more about it or just to discuss it in general.

    Simple Moving Average Strategy For Binary Forex Options

    This is one of the pillars of my personal trading system and an easy way to trade forex markets. It is a simple moving strategy but does not use a simple moving average. I prefer to use the exponential moving averages because it hugs prices a little tighter and helps you get into the right trades earlier. It is possible to advance this strategy with the addition of the simple moving average. With that addition it is then possible to measure extremes and take signals from crossovers but that is for a different time. Today I am focusing on the simple version of my moving average strategy. For this I am using a 30 bar exponential moving average and two time frames; daily and 30 minute. In each time frame the moving average will remain 30 bars.
    http://www.binaryoptionsthatsuck.com...nly-dont-suck/

  2. #2
    Moderator Kolyo's Avatar
    Thanks Michael for this article! It is great we can learn from your experience and to be able to try your methodology in practice
    Last edited by Kolyo; 10-31-2014 at 08:40 PM.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  3. #3
    Rookie Member
    Great article, thanks for sharing Michael.
    This is verry mutch alike my own strategy aswell.

    The things I look for more is a convergance on the RSI and price as it retraces to the 30 EMA and the shape the price is forming when retracing to it before the bounce.

    In your article you wrote "Today I am focusing on the simple version of my moving average strategy". I'm verry curious what's your more advanced version is about. Could you please share it here.

  4. #4
    Legendry Member Michael Hodges's Avatar
    my advanced strategy includes simple moving average strategy, simple stochastic strategy, simple MACD strategy, Fibonacci retracement and support/resistance theory, all combined with economic data and fundamental analysis. Simple right?

  5. #5
    Legendry Member willyw's Avatar
    Its best to keep trading strategies with simple indicators. Not neccesary complicated indicators can make money. Simple indicators can also make money

  6. #6
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    As included in the article that this strategy may use just one indicator but there are many things to consider when entering into a trade. I personally do not like a messy chart which is why I am in favor of fewer indicators but it is for experienced traders who rely more on advance PA techniques and less on indicators.
    This Simple moving Average strategy is definitely for advance traders only as you have to keep many things in mind while taking signal from a moving average indicator.

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by M.J View Post
    As included in the article that this strategy may use just one indicator but there are many things to consider when entering into a trade. I personally do not like a messy chart which is why I am in favor of fewer indicators but it is for experienced traders who rely more on advance PA techniques and less on indicators.
    This Simple moving Average strategy is definitely for advance traders only as you have to keep many things in mind while taking signal from a moving average indicator.
    I agree that there are many things that should or could be considered with any analysis but I disagree that this is for advanced only. The moving average strategy is a good starting point for newbies as well.... and then they can start adding other analysis as it helps

  8. #8
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by Michael Hodges View Post
    I agree that there are many things that should or could be considered with any analysis but I disagree that this is for advanced only. The moving average strategy is a good starting point for newbies as well.... and then they can start adding other analysis as it helps
    . Definitely an excellent starting point. Moving Averages, MACD, RSI have always been easy to understand for newbies.
    Actually my point was about single-indicator strategies where trader has to rely on just one indicator. A newbie may not be able to efficiently read charts without indicators so, in my opinion, more than one indicator may be better in initial stages. It also depends on level of comfortableness in using indicators.
    Another reason, why a simple 2 or 3-indicator strategy works better for a newbie, is "Rules". With more than one indicator on chart user will learn patience by not entering into a trade hastily by getting signals from just one indicator. It will also mean lower number of trades because of lower number of signals and thus lower loss and lower frustration .

  9. #9
    Legendry Member Michael Hodges's Avatar
    I read you, very interesting. I would have said, before this, that most of the pros here would caution against using more than one indicator for a newbie.... I think using more than one would cause confusion, its harder to wait for two indicators to fire a signal at once. The single indicator systems may provide more falsies, but also plenty of good signals as well.... once the single indicator is understood a second one can be added to help weed out some of the bad signals.

  10. #10
    Legendry Member Okane's Avatar
    I started with 2 indicators and moved up to 3 for a while as a newbie.
    When I got better at using PA I started getting rid of my unnecessary indicators.
    It's much easier and more accurate not depending on too many indicators but I still
    have plenty of confirmatory factors even though I only rely on one indicator.
    Moving averages are good, I like the 200 EMA specially when it intercepts my S/R-lines
    so I get extra strong signals for entry

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