Ascending triangle forex trading - BestforexoffersNet

Ascending triangle forex trading

All we can do as swing traders is put the odds in our favor by using a few technical indicators as well as price action. We need an edge and even a small edge can build your trading account if you trade it consistently. This swing trading strategy will use a few technical analysis tools that are designed to show us if we are in an environment that supports a trade. We are going to use ascending triangle forex trading moving averages to determine the direction of the trend.

The stochastic indicator will be used with the settings 14,3,3 and the levels 80 and 20. 14 and we will use the 50 level to help confirm a strong trending environment. Consult your trading platform user manual to show you how to apply these technical indicators onto your chart. What A Moving Average Crossover Means There is nothing magical about any moving average crossover. Moving averages, like all technical analysis indicators, are derivatives of price. Moving averages simply calculate the average of X number of price points in the past.

Obviously when a trend is slowing down the price range decreases and you start getting closing prices closer to the one previous. What may appear to be a moving average supporting price is simply an artifact of slowing price action which allows the average to catch up to price. When we use it for trend direction in the crossover, all we are seeing the average of the previous 5 closes and the average of the previous 10 closes are getting smaller. You eventually see the crossover occur. We will use the cross as the first indicator for a sell signal or a buy signal. This is the daily chart of the EURUSD.

Since we are looking at swing trading strategies, I much prefer longer term time frames for trading so swings can actually develop that have the potential to run. Choose the time period you want to trade and be consistent. If you are trading a daily chart, avoid the temptation to zoom in or out to a different time period to convince yourself of a trade. You also want to monitor any current positions on the time period you entered the trade on.