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Best Moving Average Trading Strategy (MUST KNOW)
Best Moving Average Trading Strategy (MUST KNOW)
Take note
Trend trading
1. On daily timeframe identify and draw horizontal resistance turned support line and immediate
trendline.
2. After price breaks immediate trendline on daily timeframe start to look for a reversal trade
3. The price break on the immediate trendline is the area of confluence where the immediate
trendline, support or resistance line and 50 ema line should all intersect line up in the area of
confluence
4. Check price area of confluence is lined up on both the daily timeframe and 4 hour timeframe
5. Enter the trade at the area of confluence back at the daily timeframe for the immediate
trendline.
Reversal trading
1. On daily timeframe identify and draw horizontal resistance turned support line and immediate
trendline
2. Sometimes after price intersect just two lines the 50ema and the immediate trendline, a new
immediate trendline appears on the price during price reversal
3. If there is a new immediate trendline in this case, the previous immediate trendline is now
called the long term trend line, and the new immediate trendline is called the short term trend
line
4. Now having a short term trend line, check price area of confluence is lined up on both the
daily timeframe and 4 hour timeframe for the short term trend line
5. Enter the trade at the area of confluence back at the daily timeframe for the short term
trendline
Intraday trading
1. On daily timeframe identify and draw horizontal support turn resistance line and immediate
longterm trendline
2. Once price break immediate long term trend line i look for a reaction of key support
3. I go to 4 hour time frame and wait for a reaction of key support
4. When price reaches key support i check price area of confluence is lined up at key support
together with short term trend line, 50 ema, and backside of the long term trend line
5. After price action at the area of confluence all lined up i draw a shorter term trend line at the
pullback to confirm the shorter term trend line pullback is over
6. I look for a long entry and enter a long trade