BACK TO ARTICLES

Our Exclusive Long

The 50-week and the 200-week moving averages are some of the most important indicators that are always looked at by the pro traders. They act as support and resistance on the higher timeframes (most notably the daily, weekly and monthly) and crossovers between the two can also indicate major trend changes. This strategy is based on these two main principles related to the 50-period and the 200-week period averages and additionally uses the Stochastic Oscillator to determine potential trading opportunities.

Since it’s traded on the weekly chart, this strategy is of long-term nature which means that trades will not be generated frequently and trades need to be held for a longer period of time. You can expect trades to last anywhere between a few weeks and up to several months.

It's fairly easy to trade this strategy and there is scope for a degree of subjectivity and additional tools/indicators to be used with it. The required alignment of the moving averages ensures that the trader is taking trades in the direction of the prevailing trend only and helps to filter out trading opportunities of better quality.

Below is an example of a trade generated with this strategy.

Examples of long trades that were generated on the AUDUSD weekly chart – up and down arrows indicate entries and exits respectively, the numbers 1 and 2 indicate the 1st and 2nd profit exit points

Indicators to be used:

We are going to use 3 indicators as follows for this weekly timeframe Forex strategy:

  • 50-period simple moving average (SMA)
  • 200-period simple moving average (SMA)
  • Stochastic Oscillator

Trading conditions of the strategy:

Long trade entry:

  • Wait for the 50-week MA to cross above the 200-week MA

Long trade stop loss:

  • Behind bullish pattern on the chart

Long trade exit and targets:

  • Target the 200-period or 50-period moving average to the upside

Here are examples of long trades of this strategy:

Examples of long trades that were generated on the AUDUSD weekly chart – up and down arrows indicate entries and exits respectively, the numbers 1 and 2 indicate the 1st and 2nd profit exit points. Bullish crossover marked with the black circle.

Short trade entry: Short trade stop loss:

  • Wait for the 50-week MA to cross below the 200-week MA

Short trade exit and targets:

  • Target the 200-period or 50-period moving average to the downside

Here’s an example of several short trades that were generated on a daily chart of AUDJPY. This strategy is best used on the weekly chart but can be used successfully on other timeframes as well.

AUDJPY Daily chart – Several profitable short trades were generated – Down arrows indicate sell entry and up arrows indicate the exits

General guidelines for the strategy:

  • Essentially, the principle of the strategy is to only take the Stochastic signals when they are in the direction of the larger market trend and only when the signals are in the same direction as the moving averages. That is we buy on the oversold Stochastic when the moving averages are bullish and we ignore bearish signals from the Stochastic. Conversely, we sell on the overbought Stochastic when the moving averages are bearish but no trades are taken on bullish signals from the Stochastic.
  • The reverse signals from the Stochastic, however, are used for taking profits if the price has surpassed the moving averages and there are no other distinct profit target levels on the chart.
  • A candlestick pattern or some other chart pattern confirming the stochastic signal is a great enhancement to any trading signal. Thus, whenever one occurs together with a signal from the Stochastic, it’s usually a much more solid signal than either one existing alone.
  • Being mindful of key support and resistance areas us always helpful, and especially on the weekly chart. Weekly support and resistance are normally significant levels that will almost surely produce a reaction in the market. So, although not required, aiming to align the trades with support and resistance levels will enhance the strategy even more.
TRADE NOW
BACK TO ARTICLES
Premium Signals System for FREE
⭐ 87% Success in 2021!
⭐ Live Market Movement Analysis
⭐ Verified Indicators
⭐ Real-time Notifications
<< Try Now for FREE >>
Trading Systems
Scalping Morning and Evening Stars
Scalping is a very popular and widespread trading technique, which is widely used by large investment companies and banks, for example, because such trading can bring them really above-average returns within a few minutes. There are many different types of scalping trading. It can be scalping based on trading news, indicators or trading candles, which is also the subject of today's very successful and time-tested trading strategy.

50% Deposit Bonus

✅ Best Forex Broker
✅ $0 Deposit fees
✅ Spreads from 0.0
✅ Leverage up to 500:1
✅ $200 Minimum Deposit
>> TRADE NOW <<
Trading Systems
The "extra" volume moment
Market volumes can provide traders with a lot of very important information that even some of the more advanced traders are often unaware of. The "extra" Volume Moment is an interesting trading strategy that uses this information to enter trading positions with great precision and also with relatively high success, often very close to the optimal market conditions, which is undoubtedly one of the factors for trading success.
Trading Systems
The third hour decides
All professional business strategies have a common denominator - rationality. More precisely, it means that they are built on rational bases. However, there are also strategies that may seem to be hardly based on rational foundations, but the opposite is often true. This is also the case with today's strategy, where trading by the morning hours may seem to be nonsense, however, it is the morning hours in which the forex markets are formed and consequently are usually the stimulus for future developments. And this is actually really a highly rational base.
Trading Systems
Stoch & MACD - strategy with double oscillatory power
Trading indicators are among the most popular tools that traders use primarily as indicators of trading signals for their future entries. MACD and Stochastic are among the indicators that are not only tested by many years of tests, but also have been, are and still will be tested by millions and millions of users. Who even though these indicators are already well above the average professional indicators, can certainly still improve them to "perfection".
Trading Systems
Scalping by volumes
Scalping strategies are a widespread and widely used trading method, which can achieve above-average returns even with relatively small capital. The high popularity of scalping is primarily due to its undeniable advantages, such as holding a trading position for a maximum of a few minutes, a relatively large number of daily opportunities and, last but not least, refraining from negative swap positions, which are very unsuitable for scalping.