Where you can learn the forex. 50 SMA with Trendline is a day trading system basd on two simple learn forex live 3 sma averages and discretionary trend line. The 50 SMA is commonly used by traders and works as a best indicator of intraday trend direction. Discretionary trendlines indicating when breakout direction changes.
Trendline – draw across two or more points in an upward or downward trend. Now you’re ready for the next trading opportunity that comes along. This will most likely happen very shortly after an economic announcement. Only enter a trade in the direction of breaking both the 50 SMA and your trendline. This example scenario is the perfect set-up for a sell trade.
The next candle determines whether you place a sell market order right here. As always, what works going down works equally going up. The reverse pattern would set up a buy trade. In this type of trading, stop-losses can be set very small. It is rare that the trendline is broken in the reverse direction if candles have started forming on the opposite side. And, when it does come back over the line it is almost always a false breakout and it is best to be out of the trade at a small loss.
So a stop placed about 10 pips inside the trendline is usually best. One of the most difficult aspects of trading is choosing an exit point when in profit. So a very solid interpretation of your exit strategy has to be in place. You should exit when you see these three occurrences combined.