There are lots of trading strategies. You can choose one of the trading strategies that suitable for you. Starting from simply utilizing candlestick patterns, up to a more challenging level using a variety of analysis models. Some traders may idolize the Price Action trading strategy or Naked Trading that is “clean” from the indicator lines.
However, if you are a fan of technical indicators, the MA crossing strategy (Moving Average) can be one of your best strategies.
Moving Average (MA) Strategy
The crossing is a term to express the intersection between two MA indicators, as well as giving the right entry point. It tends to show an indication of a reversal to make a profit. Even so, that does not mean trading with MA crossing strategies is considered sufficient as an entry guide. There are also crossing indicators MACD or Stochastic that you can use.
According to Investopedia, the moving average is arithmetically calculated by adding recent closing prices.
Crossing MA Strategy is the simplest tool on a chart, but it is multifunctional. In addition, the MA indicator is also available on almost all trading platforms. Moreover, it becomes the default indicator installed in the chart. Generally, Moving Average indicators consist of 3 types, that is SMA (Simple Moving Average), EMA (Exponential Moving Average), and WMA (Weighted Moving Average).
MA consists of various types. Yet, the main function of the MA indicator is as a detection of the direction of the trend. It also functions as determining the entry point of the crossing between the two MA indicators.
MA crossing strategy has indeed become a “champion” for the majority of technical traders. The simplicity of its usage and the indications that it shows make it the highest place in the hearts of traders.
However, there is another alternative if you do not want to use MA , you can also take advantage of the MACD or Stochastic indicator crossing. Nevertheless, trading strategies utilizing crossing technical indicators would be better if supported by several confirmers. For example other indicators, certain candlestick patterns, to reading divergent signals.
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