Home / STRATEGY REVIEWS / 200 Moving Average Strategies. (Part -6)

200 Moving Average Strategies. (Part -6)

200 Moving Average Strategies. (Part -6)

Friends……….

A lot of thanks for visit earnmoneyfx.com

As a series part strategy of 200 Moving Average Strategy, earnmoneyfx.com research
team suggests you to follow various type entry exit strategies of 200 Simple Moving
Average as below:

1. Support & Resistance
2. 200 MA Bounce
3. Trend line
4. Ascending Triangle
5. Descending Triangle
6. Symmetrical Triangle
7. Flag Pattern
8. Channel
9. Candlesticks Pattern
10. Golden Cross
11. Death Cross
12. Short term & Mid term moving average cross
13. Multi time frame analysis.

Please note all above strategies are demo tested by earnmoneyfx.com research team
which success ratio was sixty to seventy five percent. If you follow our direction as
accurately when entry and exit, we sure that your trading result must better day by day.

200 Moving Average Strategy (Part -1) we have discussed about structure of 200 Moving
Average, types of 200 Moving Average and 200 Moving Average Support and
Resistance Entry Exit Strategy in details.

The 200 Day Moving Average Strategy Guide

Above link is for your ready references.

200 Moving Average Strategy (Part -2), we have discussed about 200 Moving Average
Bounce Entry Exit Strategy in details.

200 Moving Average Strategy (Part -3), we have discussed about How to Entry and Exit
Trend line and 200 Moving Average.

200 Moving Average Strategy (Part -4), we have discussed about Ascending Triangle
with 200 Moving Average Entry Exit Strategy, Descending Triangle with 200 Moving
Average Entry Exit Strategy and Symmetrical Triangle with 200 Moving Average
Entry Exit Strategy.

200 Moving Average Strategy (Part -5), we have discussed about Bullish flag pattern
with 200 Moving Average Entry Exit Strategy, Bearish flag pattern with 200 Moving
Average Entry Exit Strategy, Bullish Channel Pattern with 200 Moving Average Entry
Exit Strategy, Bearish Channel Pattern with 200 Moving Average Entry Exit Strategy

If you missed all or any one, Earnest request you to visit 200 Moving Average Strategy (Part
-1), 200 Moving Average Strategy (Part -2), 200 Moving Average Strategy (Part -3), 200
Moving Average Strategy (Part -4) and 200 Moving Average Strategy (Part -5) in
earnmoneyfx.com

These article earnmoneyfx.com research teams try to cover another strategy as below.

*** Golden Cross Entry Exit Strategy ***
*** Golden Cross Entry Exit Strategy ***

Let’s explore all ……….

Golden cross and Death cross are actually crossing above and below of two moving
averages. Before deep drive in Golden cross and Death cross at first we have to know what
Moving Averages is and how Moving averages are structed. Let’s check below …..

Moving Average are various types. E.g. Simple Moving Average (SMA), Exponential Moving
Average (EMA), Smoothed Moving Average (SMMA) etc.

Simple Moving Average (SMA) and Exponential Moving Average (EMA) are most uses of
these strategy because of its easy to calculate and understand.

As per earnmonreyfx.com research team demo test, this strategy works well any
timeframe and any pair.

For good success rate we suggest you One Hourly, Four Hourly, Daily timeframe and major
pair (EURUSD, GBPUSD, AUDUSD, NZDUSD, USDCHF, USDCAD, USDJPY, EURJPY, GBPJPY),
XAUUSD, XAUEUR, CRUIDE OIL and S&P500

 

Definition and Calculation of Simple Moving Average (SMA):

A simple moving average is formed by calculating the average price of a currency
over a specific number of periods.

Most moving averages are based on closing prices; for example, a 5-day simple moving
average is the five-day sum of closing prices divided by five.
As its name implies, a moving average is an average that moves.
Old data is dropped as new data becomes available, causing the average to move along the
time scale.
The example below shows a 5-day moving average evolving over three days.

 

Daily Closing Prices: 11,12,13,14,15,16,17

First day of 5-day SMA: (11 + 12 + 13 + 14 + 15) / 5 = 13

Second day of 5-day SMA: (12 + 13 + 14 + 15 + 16) / 5 = 14

 

 

The first day of the moving average simply covers the last five days.
The second day of the moving average drops the first data point (11) and adds the new
data point (16).

The third day of the moving average continues by dropping the first data point (12) and
adding the new data point (17).

In the example above, prices gradually increase from 11 to 17 over a total of seven days.

Notice that the moving average also rises from 13 to 15 over a three-day calculation period.

Also, notice that each moving average value is just below the last price. For example, the
moving average for day one equals 13 and the last price is 15. Prices the prior four days
were lower and this causes the moving average to lag.

For your kind information, Any moving average strategy is trend trading system.

Moving Average work well when price are up trend or down trend.

In choppy or sideways market moving average strategies are unable to well.

So we always avoid using moving average strategies when markets are choppy or
sideways.

 

Other wise its chance to hit stop loss more and more.

Simple Moving Average is default indicator in Metatrader4 or Metatrader5.

Metatrader4 Simple Moving Average plot as below

Open Metatrader4 > Insert > Indicator > Trend > Moving Average > Simple > OK

Important things,

We will take our BUY decision when price is above 200 Simple Moving Average.

Also, We will take our SELL decision when price is below 200 Simple Moving Average.

 

What is Exponential Moving Average (EMA)?

An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight
and significance on the most recent data points.

The exponential moving average is also referred to as the exponentially weighted moving
average.

An exponentially weighted moving average reacts more significantly to recent price
changes than a simple moving average (SMA), which applies an equal weight to all
observations in the period.

Shortcut calculation of Exponential Moving Average (EMA):

Exponential Moving Average (EMA) = Price (T) X K + EMA (Y) X (1-k)
Where,
T= Today
Y= Yesterday
N= Number of Day in Exponential Moving Average
K= 2 / (N+1)

 

Don’t worry about Exponential Moving Average critical calculation.

Exponential Moving Average is default indicator in Metatrader4 or Metatrader5.

Metatrader4 Exponential Moving Average plot as below

Open Metatrader4 > Insert > Indicator > Trend > Moving Average> Exponential > OK

 

Important things,

We will take our BUY decision when price is above 200 Exponential Moving Average.

Also, we will take our SELL decision when price is below 200 Exponential Moving Average.

Golden Cross Entry Exit Strategy:

Before explore Golden Cross Entry Exit Strategy at first we learn to know what is Golden
Cross.

What is Golden Cross: Few time world heavy weight news channel or newspaper (e.g. BBC,
CNN and BLOOMBERG) published breaking news that EURUSD created Golden Cross. After
this news market tries to creating new high and high. It’s specially BUY mood because of
Golden Cross.

Actually when Midterm Moving Average crosses Long Term Moving Averages from below
then market create Golden Cross.

As very much simple, When 50 Simple Moving Average crosses 200 Simple Moving Average
from below its Golden Cross. You also can use Exponential Moving Average here.

 

 

Image 1:

 

 

 

Golden Cross ( 50 Simple Moving Average crosses 200 Simple Moving
Average from below)

Various types Golden Cross Entry and Exit Strategy are practicing in financial market.

Earnmoneyfx.com research team suggest you two most usable strategy which success rate
are eighty to ninety percent if you follow our instruction properly.

Those are

1. Aggressive Entry and Exit Strategy when Golden Cross.
2. Traders Action Zone (TAZ) Entry and Exit Strategy.
Let’s explore both…..

 

Image 2:

 

 

Aggressive Entry and Exit Strategy when Golden Cross.

Image point number – 1, We see candlesticks close above 200 Moving Average. That
means its uptrend. Also its time to wait and watch as per Aggressive Entry and Exit
Strategy when Golden Cross.

Image point number – 2, Maintaining sideways above 200 Simple Moving Average where
candlesticks never close below 200 Simple Moving Average. That means price is till now
bullish. We have to wait for Golden Cross.

At last Golden Cross created. We hope that price will go up massively.

Image point number – 3, Aggressive or conservative trader put their BUY STOP order 2
pips above of Golden Crossing candlesticks.

Image point number – 4, After hit BUY STOP order aggressive trader place STOP LOSS 2
pips below of 50 Simple Moving Average.
Where, Conservative traders place STOP LOSS 2 pips below of 200 Simple Moving Average.

Image point number – 5, Conservative or aggressive trader place their take profit level on
near swing high or 1 : 2 or 1 : 3 risk reward ratio.

 

Image 3:

 

Traders Action Zone (TAZ) Entry and Exit Strategy.

What is Traders Action Zone (TAZ): Before explore this strategy , At first we have to
know what is Traders Action Zone (TAZ).

Traders Action Zone (TAZ) is actually this area of chart where swing trader and pullback
trader take their position. Swing trader and pullback trader wait until price come Traders
Action Zone (TAZ).

Traders Action Zone (TAZ) area determined variously based on strategy,
This Golden Cross strategy Traders Action Zone (TAZ) is between 50 Simple Moving
Average and 200 Simple Moving Average until setup invalid.

Let’s explore….

Image point number – 1, We see candlesticks close above 200 Moving Average. That
means its uptrend. Also its time to wait and watch as per Traders Action Zone (TAZ) Entry
and Exit Strategy.

Image point number – 2, After Golden Cross price go up massively. But as per Traders
Action Zone (TAZ) Entry and Exit Strategy we have to wait until price come back Traders
Action Zone (TAZ).

Image point number – 3, At last price come back in Traders Action Zone (TAZ). Now time
to Look for bullish price action reversal candlesticks pattern (PIN BAR, BULLISH
ENGULFING, MORNING STAR, HAMMER, HARAMI, PIERCING, DOJI etc.)

Image point number – 4, Aggressive or conservative trader put their BUY STOP order 2
pips above of Bullish Engulfing candlesticks in Traders Action Zone (TAZ) area.

Image point number – 5, After hit BUY STOP order aggressive trader place STOP LOSS 2
pips below of Bullish Engulfing candlesticks.
Where, Conservative traders place STOP LOSS 2 pips below of 200 Simple Moving Average.

Image point number – 6,Conservative or aggressive trader place their take profit level on
near swing high or 1 : 2 or 1 : 3 risk reward ratio.

Death Cross Entry Exit Strategy:

Before explore Death Cross Entry Exit Strategy at first we learn to know what is Death
Cross.
What is Death Cross: Few time world heavy weight news channel or newspaper (e.g. BBC,
CNN and BLOOMBERG) published breaking news that EURUSD created Death Cross. After
this news market tries to creating new low and low. It’s specially SELL mood because of
Death Cross.

Actually when Midterm Moving Average crosses Long Term Moving Averages from up then
market create Death Cross.

As very much simple, When 50 Simple Moving Average crosses 200 Simple Moving Average
from up its Golden Cross. You also can use Exponential Moving Average here.

Various types Death Cross Entry and Exit Strategy are practicing in financial market.

Earnmoneyfx.com research team suggest you two most usable strategies which success
rate are eighty to ninety percent if you follow our instruction properly.
Those are….
1. Aggressive Entry and Exit Strategy when Death Cross.
2. Traders Action Zone (TAZ) Entry and Exit Strategy.
Let’s explore both…..

 

Image 4:

 

 

Aggressive Entry and Exit Strategy when Death Cross.

Image point number – 1, We see candlesticks close below 200 Moving Average. That
means its downtrend. Also its time to wait and watch as per Aggressive Entry and Exit
Strategy when Death Cross.

Image point number – 2, Maintaining sideways above 200 Simple Moving Average where
candlesticks never close up 200 Simple Moving Average. That means price is till now
bearish. We have to wait for Death Cross.
At last Death Cross created. We hope that price will go down massively.

Image point number – 3, Aggressive or conservative trader put their SELL STOP order 2
pips below of Death Crossing candlesticks.

Image point number – 4, After hit SELL STOP order aggressive trader place STOP LOSS 2
pips above of 50 Simple Moving Average.
Where, Conservative traders place STOP LOSS 2 pips above of 200 Simple Moving Average.

Image point number – 5, Conservative or aggressive trader place their take profit level on
near swing low or 1 : 2 or 1 : 3 risk reward ratio.

 

Image 5:

Traders Action Zone (TAZ) Entry and Exit Strategy.

Image point number – 1, We see candlesticks close below 200 Moving Average. That
means its downtrend. Also its time to wait and watch as per Traders Action Zone (TAZ)
Entry and Exit Strategy.

Image point number – 2, After Death Cross price are sideways. But as per Traders Action
Zone (TAZ) Entry and Exit Strategy we have to wait until price come back Traders Action
Zone (TAZ).

Image point number – 3, At last price come back in Traders Action Zone (TAZ). Now time
to Look for bearish price action reversal candlesticks pattern (PIN BAR, BEARISH
ENGULFING, SHOOTING STAR, HARAMI, DARK CLOUD COVER, DOJI etc.)

Image point number – 4, Aggressive or conservative trader put their SELL STOP order 2
pips below of Bearish Engulfing candlesticks in Traders Action Zone (TAZ) area.

Image point number – 5, After hit SELL STOP order aggressive trader place STOP LOSS 2
pips above of Bearish Engulfing candlesticks.

 

Where, Conservative traders place STOP LOSS 2 pips above of 200 Simple Moving Average.
Image point number – 6,Conservative or aggressive trader place their take profit level on
near swing high or 1 : 2 or 1 : 3 risk reward ratio.

 

——- Thanks for give your valuable time to read this article ——–
(To be continued)

 

 

 

 

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