The Right Time for Trading

FX:EURGBP   Euro Fx/British Pound
Simplicity Trading Strategy can produce huge profit, but only when we have suitable market conditions. When we have up or down trend with clear impulse and correction waves. It's very important to use a daily chart as a filter and open trades based on 15M and 1H charts in the same direction as it's on the higher time frame. I prepared an example of market conditions which you have to search for. When a daily chart have such structure - you can trade using Simplicity Trading Strategy. Let's make it clear what do we have here.

We have up trend because: MAs rise and MA20 is above MA50. Also ADX is above 20 and confirms trend market conditions. When we have such market, it's the right time for trading.

Look at the circles - I marked the situations when price reached MA20 and bounced. MACD histogram confirmed price reversal and it was the perfect time for trading based on 15M and 1H charts. Please note, when price reverses from the support line, it's the best time for joining the price movement on the lower time frames.

As for blue lines, when price bounces from MA and moves on a distance, we have to wait for correction and returning to MA. These blue lines show price reversals confirmed by MACD histogram. All long trades have to be closed and you wait for new price reversal from MA. If you have questions, please write in comments.

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