Moving Averages Crossover Strategie

A simple but effective strategy in Forex trading is to wait until various moving averages cross over.

For this purpose one draws the following EMAs (exponential moving average) in a 1 hours a chart:

· EMA10 (green)

· EMA25 (yellow)

· EMA50 (red)

If now the green line the red and yellow line, this is our entry signal - from bottom to top means buying, selling from top to bottom.

Here, it is important to wait until the last period has been completed and the position of EMAs is then in the correct position, as we otherwise obtain many wrong signals.

In trend markets, you can make some pips profit with this strategy.

A tip from my side but would be to close its positions overnight, even if you sometimes like to several days open can such a trade.