20 Pips a Day Compounding CFDs Trading Strategies
The 10 or 20 pips cfd price range moving average indicator strategy is used with the 15 minutes & 1 Hour CFD Charts. On this cfds trading chart time frames we use the 100 and 200 simple moving average indicator.
Both the 1 Hour & 15 min chart time frames will use the 100 and 200 simple moving average indicator (SMA Indicator) to determine the direction of the CFD trend.
The 1 Hour cfds trading chart time-frame checks the long term direction of the CFD trend, upward trend or downwards trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute cfd price cfd chart to find the optimal point to enter trades. Trades are opened only when the price is within 10 or 20 pips range of the 200 simple moving average indicator, if cfd price is not within this pip range trades are not opened.
CFD Trading Uptrend/Bullish Market
To generate CFD Trading buy signals using the 10 or 20 pips moving average indicator cfd strategy, we shall use the 1 hour and 15 minute chart timeframe.
On the 1 hour cfds trading chart timeframe the cfd price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower cfds trading chart time frame, the 15 minute chart timeframe to generate a cfd trade signal.
On 15 minute chart timeframe, when price reaches the 10 or 20 pips range above the 200 simple moving average indicator, we open a buy cfd trade and place a stop loss 20 pips below the 200 simple moving average indicator. Stop loss can be adjusted to the amount of Pips that are suitable for your trading method but to avoid being stopped out by normal CFD Trading volatility its best to use 20 pips stoploss.
A buy cfd trade can also be opened when price touches the 100 period simple moving average trading technical indicator, provided it is not set very far from the 200 SMA. Normally the 100 simple moving average trading technical indicator will be within the 10 or 20 pips range of the 200 simple moving average trading technical indicator.
100 and 200 Simple Moving Average CFDs Indicator Buy Signal
CFDs Downtrend/Bearish Market
To generate CFD Trading sell signals using the 10 or 20 pips moving average indicator cfds trading strategy, we shall also use the 1hour & 15 minutes chart time frame.
On the 1 hour cfds trading chart time frame, the cfd price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 minute chart timeframe to generate a cfd Signal.
On 15 minute chart, when price reaches the 10 or 20 pips range below the 200 simple moving average indicator, we open a sell cfd trade and place a stop loss 20 pips above the 200 simple moving average indicator.
100 and 200 simple moving average indicator Sell Trading Signal
With this cfd trading strategy method cfd price will generally bounce of these areas because many CFD traders watch these levels, and open similar trades at around the same point.
These levels act as short term resistance or support areas within the cfd price cfd trading charts.
CFDs Trading Profit Taking level For This Strategy
With this cfds trading strategy the cfd price will bounce & make a move in the direction of the original CFD trend. This move will range from 50 - 80 pips.
Best profit-taking level would therefore be considered to be 50 - 60 pips from the 200 simple moving average technical indicator.
