Thursday, September 25, 2008

Moving Average Strategy | ForexGen

This is a nice simple forex trading strategy. It involves waiting for the 5 EMA to crossover the 8 EMA. A chart below demonstrates this occurrence.

The stop loss and take profit points are discretionary, but should be at major support and resistance points. Personally, I use fibonacci retracement points and trend lines. Pivot points can also be used. It’s important to always ensure your risk/reward ratio exceeds 1:1.

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