Top 3 Moving Average Crossover Strategy For Day TradingJackson Oliver
The 3 Moving Average Crossover Strategy is a forex trading strategy. Its used to detect the moving averages with 3 different types of the market trends. You can trade long term and short term with using 3 Different EMA. It is the first technical strategy that is used to detect different ways for forex trading strategies. It is one of the simplest forex strategies.
3 MOVING AVERAGE CROSSOVER STRATEGY: –
This strategy uses different formula’s that helps the traders to get a precise measurement of the moving averages in the market trend. This strategy helps the traders to get more active responses from the market trend.It helps the trader’s whose main focal point is short term trends of the price action and these trends can easily find out by exponential moving average strategy but if the focal point of the traders is long term trends then the best strategy to be used is Simple mobbing average strategy.
There are three different angles of simple moving averages also known as 3 SMA. It is also a crossover strategy. It uses 3 exponential moving averages of different lengths.
THE 3 SMAs:-
There three different periods for the simple moving averages in this strategy and these are:
- 13 SMA
- 26 SMA
- 100 SMA
It also uses specific colours for all these periods. The magenta colour is used for 13 SMA periods, Forest Green colour is used for 26 SMA periods, and Orange Red colour is used for 100 SMA periods. These three different periods detects different moving averages in the market trend. 13 SMA is used to detect the fast MA, 26 SMA is used to detect the slow MA, and 100 SMA is used to detect the trend’s direction.
This strategy also uses a different setup to buy and sells signals. The setup is given below:-
SETUP FOR BUY ENTRY AND EXIT: –
There are different rules for entry and exit setup of the buy. The rules are given below: –
- It is very important for the buy setup that the price in the market trend should be up to the 100 SMA.
- To place buy in the market trend, both the 13 and 26 SMAs must be above the 100 SMA.
- Exit the buying strategy when the 13 simple moving averages go above the 26 simple moving average periods.
SETUP FOR SELL ENTRY AND EXIT: –
There are different rules for sell and exit setup of the buy. The rules are given below: –
- It is very important for the sell setup that the price in the market trend should be down to the 100 SMA.
- To place sell in the market trend, both the 13 and 26 SMAs must be below the 100 SMA.
- Exit the selling strategy when the 13 simple moving averages go below the 26 simple moving average periods.
Uses of 3 Moving Average Crossover Strategy
Currency pairs: All
EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD, NZDUSD, USDCAD,EURJPY, EURCHF, EURGBP, EURAUD, EURNZD, EURCAD,GBPJPY, GBPCHF, GBPAUD, GBPNZD, GBPCAD AUDCAD, AUDNZD, AUDJPY, CHFJPY, NZDJPY, CADJPY, CADCHF, NZDCHF
Trading Time: 24 Hours
Timeframe: M5 3 Moving Average Crossover Strategy
Recommended broker: All trusted brokers
Remember, Before use 3 Moving Average Crossover Strategy you can test on Demo account. When you will expert then you will use in Real account of trading.
The moving average strategy can give you more profit in forex trading market. Moving average can give you more accurate signal. You can make good profit easily by using this indicator. If you want make profit for long trades and short trades, try first in demo minimum 1 month then you can trade in real account. When you will be expert in this indicator.
The moving average strategy has many uses. This strategy helps the traders to make an accurate and profitable trade with the help of short timeframes, long timeframes, short term averages, and long term averages. It is also used to detect the price movements and trends in the market.