Forex MA Trend Line Analysis and Tutorial (Case Study: USDCAD & GBPJPY January 27-31, 2020)

High accuracy Forex MA Trend Line Analysis (Case Study: USDCAD & GBPJPY January 27-31, 2020) –  Whether you are using the 50-day, 100-day or 200-day moving average, the method of calculation and the manner in which the moving average is interpreted remain the same.

A moving average is simply an arithmetic mean of a certain number of data points.

The only difference between a 50-day moving average and a 200-day moving average is the number of time periods used in the calculation.

The 50-day moving average is calculated by summing up the past 50 data points and then dividing the result by 50, while the 200-day moving average is calculated by summing the past 200 days and dividing the result by 200.

 

Critics of technical analysis say that moving averages act as support and resistance because so many traders use these indicators to inform their trading decisions.

• GBPJPY: Buy Opportunity

The price reached the daily trend line.

The price action in this zone will be able to provide us a new buy opportunity.

As we can see now, the downward movement was stopped at the trend line. RSI is not far from the oversold zone. MACD is going to confirm the price reversal.

How to trade?

If the market gives us a bullish candle or a reversal candlestick pattern, it will be possible to use this signal to open long positions. Stop-loss orders must be placed below the local swing low. The main profit target should be at SMA100.

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If the price drops below 141.200 support, we should be ready to see the further falling to the next support zones.

 

• USDCAD: The Perfect Sell Opportunity

If we talk about the perfect trade, this is a good example.

It is the perfect one from the TA point of view.

The price reverses from the upper line of the price channel. RSI confirms the price reversal. MACD supports a possible downward movement. We have a trend reversal signal based on a bearish divergence.

• Entry Price: below 1.31760
• Stop Level: above 1.32120
• Profit Level: at 1.31105

Risk per trade must be no more than 1% of your capital. If the price reaches 1.31400 level, it will be possible to move stop orders to breakeven.

 

MA TrendLine is a highly accurate trend following forex strategy. The system gives you clear signals which will definitely help you to make best trades. Forex MA TrendLine hasn’t used any indicators that are hard to understand and that is confusing either. The chart looks very clean and professional.

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