Advanced forex – How to Maximize Your Forex Profits with Step Moving Average Trading and Momentum System. Forex trading is the most popular way to earn extra money from home this century, but people rarely know how to maximize its benefits and limit its risks effectively enough to achieve a success rate of 80%.
Step Moving averages (Step MA) smooth the price data to form a trend following indicator. They do not predict price direction, but rather define the current direction with a lag. Step Moving averages lag because they are based on past prices. Despite this lag, step moving averages help smooth price action and filter out the noise.
Momentum is used as a leading forex indicator. This tool uses the notion that as a rule the last phase of upward tendency is followed by absolute price increase because everyone is sure that it will go on. In its turn, the closing of the bears’ market is usually followed by absolute decrease in prices because everyone seeks after leaving the market. This is a rather usual situation in the market but it is important to understand that still it is quite a general conclusion.
The absolute value of Momentum characterizes the velocity of movement of the prices; the large absolute value of Momentum means fast movement of the prices.
About a zero point, the chart of the Momentum shifts. If the chart crosses the zero line, it means changing of direction of shift, which means that the market has lost the moment of movement. The price still can grow, when the Moment already will reach the zero point. After crossing a zero line, the movement below zero is signal to sale; above zero means a signal to purchase.
How to Maximize Your Forex Profits with Step Moving Average Trading and Momentum System. Here we will give Step Moving Average Trading Simple rules that will help you increase your profit potential.
- Yellow line Step MA cross upward blue line Step MA
- Momentum line above 100.08
- AQUA Price Channel Stop below the price
- Price above blue MA lines and red MA lines
- Blue MA lines cross upward red MA lines
- Yellow line Step MA cross downward blue line Step MA
- Momentum line below 99.92
- MAGENTA Price Channel Stop above the price
- Price below blue MA lines and red MA lines
- Blue MA lines cross downward red MA lines
Traders NOTE :
Begin with small sums, increase the size of your forex account through organic gains, not by greater deposits.
One of the best tips for trading forex is to begin with small sums, and low leverage, while adding up to your account as it generates profits.
There is no justification to the idea that a larger account will allow greater profits. If you can increase the size of your account through your trading choices, perfect. If not, there’s no point in keeping pumping money to an account that is burning cash like an furnace burns paper.