20 Pip Challenge Excel - 20 Pips a Day Forex Strategy PDF
The 20 pips price range moving average technical indicator strategy is used with the 15 minutes & 1 H Forex Charts. On this forex chart timeframes we use the 100 and 200 simple moving average trading technical indicator.
Both the 1 Hour and 15 minute chart time frames will use the 100 and 200 simple moving average indicator (SMA Indicator) to determine the direction of the Forex trend.
The 1 Hour forex chart time-frame checks the long term direction of the Forex trend, upwards trend or downward trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute price forex 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 price is not within this pip range trades are not opened.
Buy Forex Trading Signal - Forex Uptrend/Bullish Market
To generate Forex buy signals using the 10 or 20 pips moving average indicator forex trading strategy, we shall use the 1 hour and 15 minute chart time frame.
On the 1 hour forex chart time frame the price of the currency pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower forex chart time frame, the 15 minute chart time frame to generate a forex trade signal.
On 15 minute chart time frame, when price reaches the 10 or 20 pips range above the 200 simple moving average indicator, we open a buy trade and place a stop loss 20 pips below 200 simple moving average 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 forex trade can also be opened when price touches the 100 Simple moving average 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 moving average indicator.
100 and 200 Simple Moving Average Technical Indicator Buy Forex Signal
Sell Forex Trading Signal - Forex Downtrend/Bearish Market
To generate Forex 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 forex chart time frame, the price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 minute chart time frame to generate a forex trading 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 trade and place a stop loss 20 pips above the 200 simple moving average indicator.
100 and 200 simple moving average Technical Indicator Sell Forex Signal
With this forex strategy method price will generally bounce of these levels because many Forex traders watch these levels, & open similar trades at around the same point.
These areas act as short term resistance or support levels within the currency price forex trading charts.
Forex Trading Profit Taking level for This Strategy
With this Forex trading strategy the forex price will bounce and make a move in direction of the original 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.
