📌Four moving average strategies with high winning rates. I have used many moving average strategies, and these are the best ones! Moving averages are used by almost every trader, but few realize how useful they are! ! 😍😍🚀
The first one is to use the inertia of the market to conduct short-term trading. The two exponential moving averages EMA144 and EMA169 are used here. The interval composed of the two moving averages is also called the Vegas channel. The channel can often provide naked-eye visibility on the price. Very effective dynamic support and resistance ~
The entry rule for bulls is that when one or two big positive lines close to about 15% appear on the daily line or 4-hour chart, and after starting near the Vegas channel or breaking through the Vegas channel, we think the market will follow. Start a bullish trend for a while!
The price movement has inertia. Once the signal for the start of the bull trend appears, this trend will be strengthened due to various market factors. The start signal here is the big positive line of about 15%/
We can choose to enter the market near the big Yang line. If we are afraid of heights or miss the opportunity to enter, we can also wait until the price drops back to near the 15-minute Vegas channel for the first time. We can also wait until it drops back to near the 1-hour channel. It’s also a good opportunity to enter/
It should be noted that as the price contacts the Vegas channel more and more times, the support and resistance of the channel will become weaker and weaker. At this time, the best choice is to wait and see or participate with a small position! !
📍The second one is to use the feature of price reversion to the mean to conduct transactions. The Vegas channel is also used here! 😘👍
According to the mean reversion theory, the prices of many targets in the financial market show mean reversion characteristics, that is, they sometimes deviate from the average, but they will eventually return to a position close to the average ~
The moving average is an indicator that identifies the average price over a period of time, and naturally has this magnet effect. This provides us with a very good trading idea. That is to say, when the price is far away from the moving average, we should not overly expect that the price will continue to move away. The market fluctuates most of the time, so we can use regression Use the characteristics of the mean to conduct swing trading/
The formation of a volatile market is because there is resistance at the top and support at the bottom. If we want to have a considerable trading range, we can find support and resistance at the level of the large cycle, and then determine the take-profit position near the moving average of the small cycle.
The rule for entering the long position is that first, it is best to maintain a multiple of more than 4 times for large time periods and small time periods. For example, first mark the support position on the 4-hour chart, and then observe on the 1-hour or 15-minute chart to see whether the price deviates too much from the moving average. /
If the deviation is too large and close to the four-hour support level, we can enter a long order here, the stop loss can be set below the support level, and the take profit can be set near the Vegas channel.
It should be noted that if the trend of the daily line or the 4-hour period is upward, then when we do the mean reversion band, the winning rate of long will be higher than that of short and the profit will be greater. This is the benefit of following the trend!
📍The third is to trade by combining key areas with MACD. Here we use the EMA200 moving average. The key areas can be support and resistance levels/supply and demand areas/structural levels, etc.👍
We will encounter many useless or conflicting trading signals during trading. If you are new to the trading market, it will be difficult to distinguish them clearly. Whether multiple mutually validating trading signals appear at the same position is a very effective way to judge the quality of a trading opportunity. Thinking from multiple perspectives can filter out market noise to a great extent and increase your probability of winning a transaction.
The EMA200 moving average is conventionally regarded as the dividing line between bulls and bears. When the 4-hour or daily price is above EMA200 for a long time, it means that the market is in an upward trend and it is suitable to go long along the trend/
When the price continues to be below the EMA200 moving average, it means that the current market is in a downward trend and is suitable for shorting. It is very simple.
The rule for entering the long position is that if the EMA50 coincides with the key area on the 4-hour chart, and the MACD also has a bottom divergence, then we can enter a long position at the closing price of the K-line corresponding to the change from the real column to the virtual column of the MACD. The stop loss is set just below the key area, and the take profit is selected in batches.
📍The fourth one is to use moving averages to judge whether the market is trending or fluctuating. Here we use two moving averages, EMA50 and EMA200🚀
The rule that conforms to the trend of the market is that when EMA50 crosses the EMA200 moving average from bottom to top to form a golden cross, and the distance between the two moving averages gradually increases, we think that the market is in a relatively strong bullish trend/
In this situation, we often use to set a moving take-profit. For example, we have entered the market and when we observe that the price has fallen below the EMA50 moving average, then we choose to take full or partial take-profit to retain profits.
The rule of the volatile market is that when the distance between the EMA50 and EMA200 moving averages continues to shrink, it means that the market trend is slowing down. As the moving average begins to wrap up and down, it means that the trend has entered a disorderly consolidation period/
This situation is not suitable for trading. At this time, we can choose other targets, or stop trading and look at my channel more, and wait until next spring when the flowers bloom and face the sea~
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