Advanced Moving Average Forex Trading Tutorial – How To Become A Successful Forex Trader With Moving Average Indicator

Moving Average Forex Trading Tutorials – This is Forex Profitability Code trading system. The Forex Profitability Code trading system is a POWERFUL SYSTEM that has performed very well during the Demo and the Live Rounds of the recent Surefire Trading Challenge. It went up against thousands of other systems and won.

This system beat 4000 systems to win the Live Round with a one month gain of 100.99% in Real Live Money Trading.

This may be considered an advanced trading system that would be ideal for intermediate to advanced traders that are familiar with trading the Forex market but can also be very powerful in the hands of novice traders.

 
The system relies on Fibonacci retracements, Moving Averages and the Williams Percent Range indicator. The system has also been designed to work on an intraday basis but it can be applied to all timeframes and all the available currency pairs.

The Forex Profitability Code system is very easy to apply once you are familiar with the rules.

It uses a 1:2 risk/reward ratio which means you could potentially gain more than you risk on each trade that you enter.

The indicators that are part of this system are very easy to understand and interpret making it a great system for all traders. The Forex Profitability Code system can be considered as a conservative strategy which means that the risks are relatively low.

This is a trend following and breakout strategy and the entire strategy revolves around ensuring that a trader remains on the right side of the trend at all times.

It uses higher time frames for analysis which helps you stay on the right side of the current trend and we all know the trend is our friend.

So, if you can follow the rules of this trading system you can be sure that you will remain on the right side of trade for the majority of your trading endeavours.

 

Buy Trade Rules

 

1.  Draw a Fibonacci retracement on the previous month’s data

 

  • You can use the Daily or the Monthly chart.
  • On the Daily chart, start at the beginning of the previous month.

In the following image, you can see a EURJPY Daily chart. The previous month’s data can be identified by the white vertical Period Separator lines on your chart. At this stage, all you need to do is identify where the previous month’s data begins and ends.

 

  • If the open at the beginning of the previous month is LOWER than the close at the end of the previous month draw your Fibonacci retracement starting from the low to the high.
  • If the open at the beginning of the previous month is HIGHER than the close at the end of the previous month draw your Fibonacci retracement starting from the high to the low.

On the following image, you can see that the candle at the beginning of the previous month has opened higher than the close at the end of the previous month so we will draw our Fibonacci retracement from the highest high to the lowest low of the previous month’s data.

 

  • If you are using the Monthly chart simply look at the previous candle. In the following image, you can see a EURJPY Monthly chart. The previous month’s data can be identified by previous candle from the hard right edge.

 

  • If it is a Bullish candle draw your Fibonacci retracement starting from the low to the high.
  • If it is a Bearish candle draw your Fibonacci retracement starting from the high to the low.

On the following image, you can see that the previous candle has opened higher than it had closed. It is a bearish candle so we will draw our Fibonacci retracement from the high to the low of this candle.

 

2. Draw a Fibonacci retracement on the previous week’s data
  • You can use the Weekly or the 4 Hour chart.
  • On the 4 Hour chart, start at the beginning of the previous week.

In the following image, you can see a EURJPY 4 Hour chart. The previous week’s data can be identified by the white vertical Period Separator lines on your chart.

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At this stage, all you need to do is identify where the previous month’s data begins and ends.

 

  • If the open at the beginning of the previous week is lower than the close at the end of the previous week draw your Fibonacci retracement starting from the low to the high.
  • If the open at the beginning of the previous week is higher than the close at the end of the previous week draw your Fibonacci retracement starting from the high to the low.

Or you could use the Weekly chart to insert the Fibonacci retracement instead.

  • If you are using the Weekly chart simply look at the previous candle.
  • If it is a Bullish candle draw your Fibonacci retracement starting from the low to the high.
  • If it is a Bearish candle draw your Fibonacci retracement starting from the high to the low.

On the following image, you can see that the previous candle has opened higher than it had closed. It is a bearish candle so we will draw our Fibonacci retracement from the high to the low of this candle.

 

  • The Fibonacci retracement on the Weekly chart  does not require the 23.6 and 38.2 levels.

 

3. Go to the 15 Minute chart to identify an entry

At this point, your 15 Minute chart should look like this:

 

4. Wait for a candle to close above the 21 EMA of the Highs

 

5. Fibonacci retracement levels

As long as price remains above the 21 EMA of the Highs wait for a candle to close above any of the Fibonacci retracement levels.

In this particular example, you can see that the candle closed above the 21 EMA of the Highs and the 61.8 Fibonacci level on the same candle. Take a look at the image below.

 

6. Enter a Buy trade

If both the conditions above are met and the Williams % R is above 50 enter a Buy trade at the open of the next candle.

The next image shows where we would place the order to enter a Buy trade.

 

7. Place your stop loss

Place your stop loss 27 pips away from the Fibonacci level that was breached by the entry candle

 

8. Place your Take Profit

Place your Take Profit 45 pips away from your entry price

 

Buy Trade Example

 

Now that you are familiar with the rules for entering Buy trades, let’s take a closer look at an example of a Buy trade. For this example we will use the USDCHF currency pair and we will begin by inserting our Fibonacci retracement on the Daily chart.

As you can see on the image below, the previous month closed lower than it opened so in this case, we can draw our Fibonacci retracement from the Highest High to the Lowest Low.

 

The next step is to switch to the 4 hour timeframe and insert our Fibonacci retracement over the last week’s data.

As you can see on the following image, the previous week closed LOWER than it opened so in this case, we can draw our Fibonacci retracement from the Highest High to the Lowest Low.

 

Now that we have inserted our Fibonacci retracements we may switch down to the 15 minute timeframe to identify an entry point.

 

As you can see on the image above, the Buy entry signal occurred when price closed above the 21 EMA of the Highs and the 0 Fibonacci level. At the same time, the Williams % Range was above the 50 level so all the criteria required for a Buy trade had been met.

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We entered the Buy trade at the open of the next candle and set our Stop Loss 27 pips away from the 0 Fibonacci level which triggered the entry. Our Take Profit was set 45 pips away from our entry level and as you can see, price moved in our favour immediately. We exited this trade with a profit within a few hours.

 

Sell Trade Rules

 

1. Draw a Fibonacci retracement on the previous month’s data
  • You can using the Daily or the Monthly chart.
  • On the Daily chart, start at the beginning of the previous month.

 

  • If the open at the beginning of the previous month is LOWER than the close at the end of the previous month draw your Fibonacci retracement starting from the low to the high.
  • If the open at the beginning of the previous month is HIGHER than the close at the end of the previous month draw your Fibonacci retracement starting from the high to the low.

 

  •  If you are using the Monthly chart simply look at the previous candle.

 

  • If it is a Bullish candle draw your Fibonacci retracement starting from the low to the high.
  • If it is a Bearish candle draw your Fibonacci retracement starting from the high to the low.

 

2. Draw a Fibonacci retracement on the previous week’s data
  • You can using the Weekly, Daily or the 4 Hour chart.
  • On the Daily or 4 Hour chart, start at the beginning of the previous week.

 

  • If the open at the beginning of the previous week is LOWER than the close at the end of the previous week draw your Fibonacci retracement starting from the low to the high.
  • If the open at the beginning of the previous week is HIGHER than the close at the end of the previous week draw your Fibonacci retracement starting from the high to the low.

 

  • If you are using the Weekly chart simply look at the previous candle.
  • If it is a Bullish candle draw your Fibonacci retracement starting from the low to the high.
  • If it is a Bearish candle draw your Fibonacci retracement starting from the high to the low.

 

  • The Fibonacci retracement on the Weekly chart does not require the 23.6 and 38.2 levels.
3. Go to the 15 Minute chart to identify an entry

At this point, your 15 Minute chart should look like this:

 

 

4. Wait for a candle to close below the 21 EMA of the Lows

 

5. Fibonacci retracement levels

As long as price remains below the 21 EMA of the Lows wait for a candle to close below any of the Fibonacci retracement levels.

 

6. Enter a Sell trade

If both the conditions above are met and the Williams % R is below 50 enter a Sell trade at the open of the next candle.

 

7. Place your stop loss

Place your stop loss 27 pips away from the Fibonacci level that was breached by the entry candle

 

8. Place your Take Profit

Place your Take Profit 45 pips away from your entry price.

 

Sell Trade Example

 

Now that you are familiar with the rules for entering Sell trades, let’s take a closer look at an example of a Sell trade. For this example we will use the AUDUSD currency pair and we will begin by inserting our Fibonacci retracement on the Daily chart.

As you can see on the image below, the previous month closed lower than it opened so in this case, we can draw our Fibonacci retracement from the Highest High to the Lowest Low.

 

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The next step is to switch to the 4 hour timeframe and insert our Fibonacci retracement over the last week’s data.

As you can see on the following image, the previous week closed higher than it opened so in this case, we can draw our Fibonacci retracement from the Lowest Low to the Highest High.

 

Now that we have inserted our Fibonacci retracements we may switch down to the 15 minute timeframe to identify an ENTRY POINT.

 

As you can see on the image above, the Sell entry signal occurred when price closed below the 21 EMA of the Lows and the 61.8 Fibonacci level. At the same time, the Williams % Range had just dipped below the 50 level so all the criteria required for a Sell trade had been met.

We entered the Sell trade at the open of the next candle and set our Stop Loss 27 pips away from the 61.8 Fibonacci level which triggered the entry.

Our Take Profit was set 45 pips away from our entry level and as you can see, price moved in our favour almost immediately and we were taken out of this trade with a profit within a few hours.

 

Conclusion

 

By now I am sure that you will agree that the Forex Profitability Code trading system is a POWERFUL SYSTEM.

Remember, this system has performed very well during Demo and the Live Rounds of the recent Surefire Trading Challenge so I am sure that this system will work well for you when applied in the correct way.

This system can be a bit more complicated that most systems out there so be sure to practice trading it on a demo account until you reach a point where you feel more comfortable trading with it.

Take your time and practice using this system and you will see that this strategy can be very powerful in the hands of responsible traders. By trading this system you will always be on the right side of the trend and this is a vital part of being a profitable trader.

The breakout rules make it easy to identify the best times to jump into trades and once you have mastered this system you can be sure that you too can enjoy the success others have had with this system.

Stick to the rules and I am sure that you will be very happy with the results.



4 thoughts on “Advanced Moving Average Forex Trading Tutorial – How To Become A Successful Forex Trader With Moving Average Indicator

  • Hi,
    I am very much interested in testing this system. It looks very promising.
    I would appreciate if you can clarify few points.
    1) which fibonacci retracement levels are required on monthly & weekly time frame?
    2) Can I open position when price is away from moving average & other conditions are met?
    Thanks.

  • I must say, the practice of drawing fibs on the monthly and weekly never occurred to me. I will start doing this in my own trading. Cheers for this write up, it seems like a solid system although targets/stops might be tweaked with for example a trailing stop. Good luck to all.

  • Hi FOREXWOT Team,

    pls recheck the the attached file of download link. It seams not have the indicator file *.ex4, only with *tpl

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