I have been leaning towards a MA retest strategy that has been panning out pretty well these past few months.
Here is a setup from a trade last week. I primarily look for candles closing at the 4 hour closes and also around the 1 hour closes around the NY session open.
There are three MA's I use. The 20 MA (blue), 50 MA (red) and the 200 MA (gold). Not only does the candle have to close on the 20 or 50 MA but the moving averages must be positioned correctly.
I use the 4 screen layout. The daily chart on the top left, 4 hour on the top right, 1 hour on the bottom left, and 15 min on the bottom right.
This is my Moving Average Correlation Strategy
In using this strategy, I review all major and minor forex pairs including indices and metals. If I see a pair closing on a moving average, I will flag it and set an alert above the high (buy) or low (short) on the timeframe where the 200 MA resides. Each week there are at least 4-6 setups.
A) IF Price closes on the 4 hour 20 MA, I need price to also close on the 50 MA on the 1 hour, and the 200 MA on the 15 min.
B) IF Price closes on the 4 hour 50 MA, I need price to also close on the 200 MA on the 1 hour.
C) IF Price closes on the 1 hour 20 MA, I need price to close on the 15 min 50 MA, and 5 min 200 MA.
D) IF Price closes on the 1 hour 50 MA, I need price to close on the 15 min 200 MA.
These are the primary correlations I use to trade. I also check the daily, but I find more setups with the above for IF, THEN criteria. Remember, the moving averages must be ALSO positioned correctly.
From here, I wait for a candle stick confirmation. I will either get in an engulfing candle on the 50 MA or the 200 MA.
TRADE ABOVE:
In the above chart, scenario (D) occurred. Price closed on the 1 hour 50 MA at 4 AM PST (one hour before the NY session). At the same time, price also closed on the 200 MA on the 15 min timeframe.
Next, I saw an engulfing candle form creating a morning star on the 200 MA on the 15 min. I did a quick check and saw this more clearly on the 30 min timeframe for additional confirmation. The buy was entered above the high with stop loss below the low.
Profit levels at RR of 3 and at a daily resistance.
Does anyone else trade this way? Is this your first time seeing this? Please respond so I know I"m not the only one here. Looking for all of your feedback!
@MDFX_TRADES
Here is a setup from a trade last week. I primarily look for candles closing at the 4 hour closes and also around the 1 hour closes around the NY session open.
There are three MA's I use. The 20 MA (blue), 50 MA (red) and the 200 MA (gold). Not only does the candle have to close on the 20 or 50 MA but the moving averages must be positioned correctly.
I use the 4 screen layout. The daily chart on the top left, 4 hour on the top right, 1 hour on the bottom left, and 15 min on the bottom right.
This is my Moving Average Correlation Strategy
In using this strategy, I review all major and minor forex pairs including indices and metals. If I see a pair closing on a moving average, I will flag it and set an alert above the high (buy) or low (short) on the timeframe where the 200 MA resides. Each week there are at least 4-6 setups.
A) IF Price closes on the 4 hour 20 MA, I need price to also close on the 50 MA on the 1 hour, and the 200 MA on the 15 min.
B) IF Price closes on the 4 hour 50 MA, I need price to also close on the 200 MA on the 1 hour.
C) IF Price closes on the 1 hour 20 MA, I need price to close on the 15 min 50 MA, and 5 min 200 MA.
D) IF Price closes on the 1 hour 50 MA, I need price to close on the 15 min 200 MA.
These are the primary correlations I use to trade. I also check the daily, but I find more setups with the above for IF, THEN criteria. Remember, the moving averages must be ALSO positioned correctly.
From here, I wait for a candle stick confirmation. I will either get in an engulfing candle on the 50 MA or the 200 MA.
TRADE ABOVE:
In the above chart, scenario (D) occurred. Price closed on the 1 hour 50 MA at 4 AM PST (one hour before the NY session). At the same time, price also closed on the 200 MA on the 15 min timeframe.
Next, I saw an engulfing candle form creating a morning star on the 200 MA on the 15 min. I did a quick check and saw this more clearly on the 30 min timeframe for additional confirmation. The buy was entered above the high with stop loss below the low.
Profit levels at RR of 3 and at a daily resistance.
Does anyone else trade this way? Is this your first time seeing this? Please respond so I know I"m not the only one here. Looking for all of your feedback!
@MDFX_TRADES