10 Pips a Day Strategy - 10 Pips a Day Strategy

The 10 or 20 pips price range moving average indicator strategy is used with the 15 minutes & 1 Hour Forex Charts. On this time frames we use the 100 and 200 simple MA Moving Average.

Both the 1 H and 15 minute time frames will use the 100 and 200 simple MA indicator (SMA Indicator) to determine the direction of the Forex trend.

The 1 Hour chart time frame checks the long-term direction of the Forex trend, upward trend or downwards trend, depending on the direction of MAs. All trades taken should be in this direction.

We then use the 15 minute price chart to find optimal point to enter trades. Trades are opened only when price is within 10 or 20 pips range of the 200 simple MA technical indicator, if price is not within this pip range trades aren't opened.

Buy Trade Signal - Uptrend/Bullish Market

To generate Forex buy signals using the 10 or 20 pips moving average indicator forex strategy, we shall use the 1 hour & 15 minute chart time=frame.

On the 1 hour chart time frame the price of the currency pair should be above both the 100 and 200 simple MA. We then move to a lower chart time-frame, the 15 minute timeframe to generate a signal.

On 15 minute time frame, when price reaches the 10 or 20 pips range above the 200 simple MA technical indicator, we open a buy trade & place a stop loss 20 pips below 200 simple MA. Stop loss can be adjusted to the amount of Pips which are suitable for your style method but to avoid being stopped out by normal FX volatility its best to use 20 pips stop loss.

A buy trade also can be opened when price touches the 100 Simple MA indicator, provided it is not set very far from the 200 SMA. Normally the 100 simple Moving Average indicator will be within 10 or 20 pips range of the 200 simple MA Moving Average.

100 and 200 Simple Moving Average Indicator Buy Trade Signal

Sell Trading Signal - Downtrend/Bearish Market

To generate Forex sell trade signals using the 10 or 20 pips moving average indicator strategy, we shall also use the 1hour & 15 minute chart time=frame.

On the 1 hour chart time frame, the price should be below both the 100 & 200 simple MA technical indicator. We then move to the 15 minute time frame to generate a forex Signal.

On 15 min chart, when price reaches the 10 or 20 pips range below the 200 simple MA technical indicator, we open a sell trade & place a stop loss 20 pips above the 200 simple MA.

100 and 200 simple MA Indicator Sell Trading Signal

With this forex strategy method price will generally bounce of these levels because many traders watch these zones, and open similar trades at around the same point.

These levels act as short term resistance or support levels within the currency price charts.

Forex profit taking level for This Strategy

With this Forex strategy the price will bounce & make a move in direction of the original trend. This move will vary from 50 to 80 pips.

Best profit taking level would hence be considered to be 50 - 60 pips from the 200 simple Moving Average technical indicator.

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