The 100 Simple Moving Average (SMA) Trend Line break strategy is a simple yet effective strategy to trade forex profitable.
Obviously, you need to know how to draw a trend line before applying this strategy to your advantage.
Trading Tools/Settings
Used Indicators: 100 period Simple Moving Average
Analysis tools: Trend Lines
Time frame(s): All
Trading sessions: All
Currency pairs: All
Download
Download the 100 Simple Moving Average Trendline Strategy.
Trading Rules
Buy Trade: Go long when the currency price trades above the 100 simple moving average and the price closes above a falling trend line from below.
Place your protective stop-loss below the most recent support.
Take you profit at 1:2 risk to reward ratio or better (or use any other TP method).
Sell Trade: Go short when the currency pair trades below the 100 simple moving average and the price closes below a rising trend line from above.
Place your protective stop-loss above the most recent resistance.
Take you profit at 1:2 risk to reward ratio or better (or use any other TP method). See pictures for clarification.
AUD/USD 4 Hour Chart Example
AUD/USD 4 Hour Chart Example
