Forex Trading Strategy Using 5 Moving Average

As we all know, in a forex trading analysis, the trend is the most important analysis in forex. Trend will give us a signal that most traders will do with the currency or pair. If the trend is up, it means that the majority of traders and investors open long positions. When we find the trend, just look for the moment to open the right trading position.

Trend in forex trading can be found using technical indicators such as moving averages. Using 2-5 moving averages will provide a more accurate trend signal. So I decided to review forex trading strategies using 5 moving averages. The steps we need to do to be able to use this strategy include:

1. Using the best broker with a low spread

Currently many forex trading brokers have sprung up. Many outside brokers and local brokers, but there are also many foreign forex brokers that are suitable for Indonesian traders. Some of the best brokers with low and thin spreads are octafx brokers, fbs brokers, and instaforex brokers. You will also get a free demo account when registering at the broker. This forex broker is very suitable for small capital scalping strategies because the spread is very low. You can learn this strategy in a demo account first, then if it is profitable and profitable, then switch to a real account.

2. Add 5 moving averages

Now you just add technical indicators to the terminal chart for example EURUSD or USDJPY as a tool to analyze trends. Here is the moving average indicator that you need to add how to set the moving average indicator accurately, among others;

#To identify trends

• Simple Moving Average period 50

• Simple period 200 Average Moving

#To do an analysis of open position execution

• Exponential Moving Average period 5

• Exponential Moving Average period 10

• Moving Average exponential period 21

3. To confirm the signal add the Stochastic oscilator indicator period 8,6,6

We use Stochastic oscillator to filter the trend signal we get from the 5 moving averages above. The recommended stochastic setting is 8.6.6.

How to find a buy signal

• 50 and 200 Moving Average crossing and forming a Buy trend

• Moving averages 5, 10, 21 crossing each other and under a candle

• Stockhastic oscillator indicator above area 80

How to find sell signals

• 50 and 200 Moving Average crossing and forming a Sell trend

• Moving Average 5, 10, 21 crossing each other and above the candle

• Stockhastic oscilator indicator below area 80

Conclusion:

Forex trading strategies using these 5 moving averages can indeed help us get profit every month. But this strategy is not suitable for you who are trading daily. Because sometimes, in one day we don't necessarily get a signal to open a position. Sometimes there are also many signals in one day. now it depends on us to determine the best time to trade and schedule the right day for trading. keep in mind..!! never be greedy in trading. because it can affect the physiology we play trading

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