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"The Magical Moving Average Forex Trading Technique"
.THE MAIN OBJECT OF FOREX TRADING
We need to make money from Forex trading by:-
1. Identifying a trend.
2. Entering as close as possible to its start.
3. Staying in the trend as long as we can.
4. Exiting it when the trend has exhausted or starts reversing.
Not an easy task and a lot to get right.
Some really simple indicators can go a long way toward answering all 4 of the above
Topic
THE MAGICAL MOVING AVERAGE TRADE
Table of Contents
1 INTRODUCTION.............................................................................................................................3
2. THE MAIN OBJECT OF FOREX TRADING........................................................................................5
3 WHAT IS THE DEFINITION OF A TREND?.......................................................................................6
4 SIMPLE MOVING AVERAGE...........................................................................................................8
5 TRADING INFORMATION WE GET FROM THE MOVING AVERAGE.............................................11
6 THE BASIC SETUP AND TRANSACTION........................................................................................16
6.1 ENTERING THE DEAL .............................................................................................................16
6.2 STAYING IN THE DEAL ...........................................................................................................17
6.3 EXITS......................................................................................................................................18
7 ADDING CERTAINTY TO THE MOVING AVERAGE CROSSOVER DEALS ........................................20
7.1 Reversal candle formations: .................................................................................................20
7.2 Reversal price formations:....................................................................................................22
7.3 Strong support or resistance breakout failures:...................................................................22
7.4 Wave Counts.........................................................................................................................23
7.5 RSI trendline violations.........................................................................................................24
7.6 Price trendline violations. .....................................................................................................24
7.7 Time of day considerations:..................................................................................................25
8 FINDING GOOD TIME FRAMES TO TRADE ..................................................................................26
9 PUTTING IT ALL TOGETHER.........................................................................................................30
10 SUCCESSFUL SETUPS...................................................................................................................31
11 WEAKNESSES OF THE MAGIC MOVING AVERAGE TECHNIQUE..................................................33
12 CLOSING REMARKS .....................................................................................................................34
13 WHERE TO FROM HERE ..............................................................................................................35


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