![]() ![]() ![]() We can judge if a trend is worth trading or not by observing how the moving averages relate to price action. You may notice that these numbers are part of the Fibonacci sequence. To determine if there is a trend or not we are going to use a set of two moving averages, out of which one is a 34 period and the other a 55 period MA. This strategy rests on trend behavior and without one it basically can not be used. The main cornerstones of this strategy are as follows: We need to have a trend. If you choose to use a different timeframe as the base chart remember that you go one timeframe lower for the signal chart (so if 1h is the base chart then the 30m timeframe is the signal chart). In this strategy, the 4h chart is used as the base chart (this is where we screen for potential places on the chart where trading signals may occur) and the 1h timeframe as the signal chart, or the trade chart (where we execute orders according to this strategy). ![]()
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