20 Pips Price Range MA Trade Strategy

The 20 pips price range moving average strategy is used with the 1 Hour Stock Indices trade chart & 15 minute Stock Indices trade chart. On this trade chart timeframes we use the 100 and 200 simple moving average technical indicator.

Both the 1 Hour & 15 minute Stock Indices trade chart timeframes will use the 100 and 200 SMA (SMA Indicator) to determine the direction of the market trend.

The 1 Hour Stock Indices trade chart time frame checks the long term direction of the market trend, upward or downwards trend, depending on the direction of the moving averages. All trades taken should be in this trend direction.

We then use the 15 minute Stock Indices trade chart to find the optimal point to enter Stock trades. trades are opened only when the price is within 20 pips range of the 200 simple MA, if price is not within this pip range Stock Indices trades are not opened.

Buy Signal - Uptrend/Bullish Market

To generate buy (bullish Stock signals) using the 20 pips moving average strategy, we shall use the 1hour & 15 minute Stock Indices trade chart timeframe.

On the 1 hour Stock Indices trade chart time frame the price of the trade chart should be above both the 100 and 200 simple moving average. We then move to a lower Stock Indices trade chart timeframe, the 15 minute chart time frame to generate a trade signal.

On 15 minute Stock Indices trade chart timeframe, when price reaches the 20 pips range above the 200 SMA, we open a buy Indices trade & place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Stock Indices volatility its best to use 30 pips stop loss.

A buy Indices trade can also be opened when the price touches the 100 Simple moving average, provided it’s not very far from the 200 SMA. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.

100 and 200 Simple MA Buy Signal - Moving Average Stock Strategy

Sell Signal - Downtrend/Bearish Market

To generate sell (short Stock signals) using the 20 pips moving average strategy, we shall also use the 1 hour Stock Indices trade chart time frame & 15 minute Stock Indices trade chart timeframe.

On the 1 hour Stock Indices trade chart timeframe, the price should be below both the 100 and 200 SMA. We then move to the 15 minute Stock Indices trade chart time frame to generate a trading Signal.

On 15 minute Stock Indices trade chart, when price reaches the 20 pips range below the 200 SMA, we open a sell trade & place a stop loss 30 pips above the 200 simple moving average.

100 and 200 Simple MA Stock Sell Signal - Moving Average Stock Strategy

With this strategy method price will generally bounce of these support & resistance levels because many traders watch these levels, and open similar Stock Indices trades at around the same point.

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

Profit Taking level For This Trade Strategy

With this strategy the price will bounce & make a move in the direction of the original trend. This move will range from 60 - 70 pips.

The best profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.