How to Trade the “Two Moving Averages + Fractals” Strategy
Author : Victor Gryazin
In this overview, we will describe the simple medium-term swing trading strategy “Two Moving Averages + Fractals”. We will explain how it works, how to set the indicators, and how it can be used in trading.
What is swing trading?
Swing trading is a medium-term trading style that implies working with various financial instruments over the course of a few hours to a few weeks. As a rule, swing traders open trades in the direction of the current trend to catch the price movement momentum after the end of a local correction. In their search for trading opportunities, swing traders mainly use technical analysis.
How the “Two Moving Averages + Fractals” strategy works
The strategy uses two moving averages (Moving Average, MA) – the EMA (10) and SMA (30) – to confirm the trading direction and search for trading signals. The MA indicator has long been considered a simple and effective tech analysis tool, which tracks trend movements well. To pinpoint entry and exit points on the price chart, the strategy also uses Bill Williams’ Fractals indicator.
How the strategy works:
https://blog.roboforex.com/wp-content/uploads/2023/04/MAandFractals-1-1536x822.png
It should be noted that the Two MAs + Fractals strategy is particularly suitable for trading various financial instruments. The recommended timeframes on the chart are H1, H4, and D1. Trades are made in the direction of the trend at the end of the correction.
How to install the Moving Average and Fractals indicators
To install the indicators on the popular trading platforms MetaTrader 4 and MetaTrader 5, follow the process below:
https://blog.roboforex.com/wp-content/uploads/2023/04/MAandFractals-2-1536x822.png
How to buy with the “Two MAs + Fractals” strategy
Read more at R Blog - RoboForex
Sincerely,
RoboForex team
Author : Victor Gryazin
https://blog.roboforex.com/wp-content/uploads/2023/04/28.04.2023-1536x864.jpg
Dear Clients and Partners,
Dear Clients and Partners,
In this overview, we will describe the simple medium-term swing trading strategy “Two Moving Averages + Fractals”. We will explain how it works, how to set the indicators, and how it can be used in trading.
What is swing trading?
Swing trading is a medium-term trading style that implies working with various financial instruments over the course of a few hours to a few weeks. As a rule, swing traders open trades in the direction of the current trend to catch the price movement momentum after the end of a local correction. In their search for trading opportunities, swing traders mainly use technical analysis.
How the “Two Moving Averages + Fractals” strategy works
The strategy uses two moving averages (Moving Average, MA) – the EMA (10) and SMA (30) – to confirm the trading direction and search for trading signals. The MA indicator has long been considered a simple and effective tech analysis tool, which tracks trend movements well. To pinpoint entry and exit points on the price chart, the strategy also uses Bill Williams’ Fractals indicator.
How the strategy works:
- To find buy signals, the trader needs a downward correction after an upward price impulse. The EMA (10) must be above the SMA (30), confirming the uptrend. During the correction, the price should fall to the SMA (30) and form an uptrend reversal with the formation of a lower fractal – this will be a signal to buy
- To find sell signals, the trader needs to wait for an upward correction after a downward price impulse. The EMA (10) must be below the SMA (30), confirming the downtrend. During the correction, the quotes must rise to the SMA (30) and form a downward reversal with the formation of an upper fractal – this will be a signal to sell
https://blog.roboforex.com/wp-content/uploads/2023/04/MAandFractals-1-1536x822.png
It should be noted that the Two MAs + Fractals strategy is particularly suitable for trading various financial instruments. The recommended timeframes on the chart are H1, H4, and D1. Trades are made in the direction of the trend at the end of the correction.
How to install the Moving Average and Fractals indicators
To install the indicators on the popular trading platforms MetaTrader 4 and MetaTrader 5, follow the process below:
- Open the terminal and log in to your account.
- Select the chart of your desired instrument.
- From the Main Menu, go to – Insert – Indicators – Trend, and then click on Moving Average.
- In the settings window that appears, select the period 10, the colour and width of the line, MA method – Exponential. Click OK to apply the parameters and close the settings window.
- Repeat the actions above but in the settings window select the period 30, the colour and width of the line, and the MA method – Simple. Click OK to apply the parameters and close the settings window.
- Go to the Main Menu – Insert – Indicators – Bill Williams, choose Fractals
- In the setting window that pops up choose the colour and size of the fractals; other parameters are set up automatically. Click OK to apply the parameters and close the setting window.
https://blog.roboforex.com/wp-content/uploads/2023/04/MAandFractals-2-1536x822.png
How to buy with the “Two MAs + Fractals” strategy
- The market Is in an uptrend, and the EMA (10) is above the SMA (30)
- During a downward correction, the quotes drop to the SMA (30) and form an upward reversal with the formation of a lower fractal
- The trader opens a buy position and sets the Stop Loss just below the local low formed by the correction
- The position is closed when the opposite upper fractal appears on the chart
Read more at R Blog - RoboForex
Sincerely,
RoboForex team
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