20 Pip Challenge Excel - 20 Pips a Day Strategy PDF
The 20 pips price range moving average indicator strategy is used with the 15 minutes and 1H Charts. On this chart timeframes we use the 100 and 200 simple Moving Average indicator.
Both the 1 H & 15 min time frames will use the 100 & 200 simple MA (SMA Indicator) to determine the direction of the trend.
The 1 Hour chart time frame checks the long-term direction of the trend, upwards trend or downward trend, based on the direction of MAs. All trade transactions taken should be in this direction.
We then use the 15 min price chart to find an optimal point to enter trades. Trades are opened only when price is within 10 or 20 pips range of the 200 simple MA indicator, if price isn't within this pip range trade transactions aren't opened.
Buy Signal - Uptrend/Bullish Market
To generate buy signals using the 10 or 20 pips moving average indicator strategy, we shall use the 1 hour & 15 minute chart time frame.
On the 1 hour time frame the price of the currency pair should be above both the 100 & 200 simple MA indicator. We then move to a lower time frame, the 15 min time frame to generate a signal.
On 15 min time frame, when price reaches the 10 or 20 pips range above the 200 simple MA indicator, we open a buy trade & place a stop loss 20 pips below 200 simple MA indicator. 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 Forex volatility its best to use 20 pips stop loss.
A buy trade also can be opened when price touches the 100 Simple MA, provided it isn't set very far from the 200 SMA. Normally the 100 simple MA will be within 10 or 20 pips range of the 200 simple MA indicator.
100 & 200 Simple MA Indicator Buy Signal
Sell Signal - Downtrend/Bearish Market
To generate sell signals using the 10 or 20 pips moving average indicator strategy, we shall also use the 1hour & 15 minutes chart time frame.
On the 1 hour time frame, the price should be below both the 100 & 200 simple MA indicator. We then move to the 15 min time frame to generate a trading Signal.
On 15 min chart, when price reaches the 10 or 20 pips range below the 200 simple MA indicator, we open a sell trade & place a stop loss 20 pips above the 200 simple MA indicator.
100 & 200 simple MA Indicator Sell Signal
With this strategy method price will generally bounce of these levels because many traders watch these levels, and open similar trades at around the same point.
These areas act as short term resistance or support levels within the currency price charts.
Forex Profit Taking level for This Strategy
With this 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 indicator.
