Timeframe: Any
Recommend pair: Any major pair
Indicator: DMA
Platform: MT4, TradingView
Long trade setup
Entry
The channel or the slope of the DMA should be upwards. Wait for the price to move upward and then enter the trade.
Take-profit
Set take-profit at the recent high from the entry point or when there is a downward slope.
Stop-loss
Place a stop-loss at the recent low from the entry point.
Example:
In the chart below, you can see that the two MAs created an upward channel. It presented a good long entry point.
Long trade setup
Short trade setup
Entry
The channel of the DMA should be downwards. Wait for the price to move downward and then enter the trade.
Take-profit
Set take-profit at the recent low from the entry point or when there is an upward slope.
Stop-loss
Place a stop-loss at the recent high from the entry point.
Example:
In the chart below, you can see that the two MAs created a downward channel. It presented a good short entry point.
Short trade setup
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