Yet another moving average crossover sys

Oh, but this is so much fun!

what is it?

This is a trend trading system using very clean charts.

Which time frame (TF)?

Any two TFs, the ratio is 1:4 - 1:6 , for example: I use H1 and M15 TF, the ratio is 1:4. But you can use H4 and H1 charts (ratio 1:4) or daily charts and H4 charts (ratio 1:6)... you get the idea.

Which one?

Any, but I will only use GBPUSD, EURUSD or AUDUSD for illustration.

How do we determine the direction of a trend for our purposes?

Simple. Add the 200 EMA/Close/0 Shift indicator to the "blank" chart. See diagram #1 below.

Looking at the 200 EMA on the GBP/USD H1 chart from left to right, it is clear that the direction has been rising since around October 7th, so until there is a clear change in the direction of the 200 EMA, we will only be taking long trades, i.e. only trading above the 200 EMA white line.

Update: I've found that MA crossovers are also very effective in counter-trend trading at lower TF...just monitor more closely and don't necessarily look for as many points as you would in trend trading.

Let’s take a look at the first half EURUSD chart to practice determining direction. (Chart #2 below) Again, the direction has been up since around October 7th. Do this exercise on other currency pairs to get more practice in determining direction.

(Note: If you trade from a higher TF on the H4 chart, you will use the 200 EMA on that higher TF to determine direction.)

Complete trading chart setup .

To the blank chart 200 EM add the following smoothed MA:

--- 3 Smoothed MA/Closing Price/0 Offset = Gold
--- 8 SmoothedMA/Close/0 Shift = Purple

See chart #3 in the next article

After setting up the chart, make sure to save the template .

"Rules Summary "

Directional big picture from H1 chart (if trading another TF, it would be higher, but the higher the TF used, the drawdown will be significantly larger)

The direction of the sweep 3,8 smooth MA is relative to the desired direction.

Make note of pairing settings Or need to review later, for example, if they get close to the 200 EMA... what will they do? Jump down at 200 meters and turn, cross or follow it. These are the only options.

When the 3 on the higher TF crosses with the 8, move to the lower TF to enter ... look for a strong cross on the lower TF and enter.

I monitor trades on higher TF , but this is trader preference.