10 Pips a Day Compounding Strategy
The 10 or 20 pips stocks price range moving average indicator strategy is used with the 15 minute & 1 Hour Stocks Charts. On this stocks chart time-frames we use the 100 & 200 simple moving average technical indicator.
Both the 1 H & 15 min chart timeframes will use the 100 and 200 simple moving average indicator (SMA Indicator) to determine the direction of the Stocks trend.
The 1 Hour stocks chart time-frame checks the long term direction of the Stocks 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 stocks price stocks 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 stocks price is not within this pip range the trades are not opened.
Buy Trading Signal
To generate Stocks Trading buy trading signals using the 10 or 20 pips moving average technical indicator stocks strategy, we shall use the 1 hour and 15 minute chart timeframe.
On the 1 hour stocks chart timeframe the stocks price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower stocks chart timeframe, the 15 minute chart timeframe to generate a stocks trading 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 stocks 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 Stocks Trading volatility its best to use 20 pips stop-loss.
A buy stocks trade can also be opened when price touches the 100 Simple moving average technical indicator, provided it is not set very far from the 200 SMA. Normally the 100 simple moving average indicator will be within the 10 or 20 pips range of the 200 simple moving average technical indicator.
100 and 200 Simple Moving Average Stock Indicator Buy Signal
Sell Trading Signal
To generate Stocks Trading sell trading signals using the 10 or 20 pips moving average technical indicator stock trading strategy, we shall also use the 1hour & 15 minute chart timeframe.
On the 1 hour stocks chart timeframe, the stocks 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 stocks 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 stocks trade and place a stop-loss 20 pips above the 200 simple moving average technical indicator.
100 and 200 simple moving average indicator Sell Trading Signal
With this stocks trading strategy method stocks price will generally bounce of these areas because many Stocks 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 stocks price stocks charts.
Stocks Trading Profit Taking level For This Strategy
With this stock trading strategy the stocks price will bounce & make a move in direction of the original Stocks 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.
