MichaelDForex

November 29, 2021 Review EURGBP 1 HOUR 50 MA

Long
FX:EURGBP   Euro / British Pound

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, looking at the bottom left, the 20 MA is above the 50 MA< This is how we would expect these 2 MAs to be positioned. INext is the Moving Average Correlation between timeframes.

When price closed at the 50 MA on the 1 hour, price ALSO closed on the 15 min 200 MA matching scenario (D).

I traded this at candle rejection on the 15 min timeframe with profit levels at Daily Support/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