Use 200 to identify a trend.
You can expect 3 types of trend 1. Uptrend 2.Downtrend and 3. Sideways
If 200 SMA is bending little straight upward you should only find opportunity to buy not to sell and
If 200 SMA is bending little straight downward you should only find opportunity to sell not to buy
If 200 SMA is straight in the middle with indicate ranging or sideways you can find both buy and sell opportunity but be careful not to trade ranging market without proper knowledge.
But question is where to execute trade or best place to take trade? HERE use 20 SMA to take trade.
--> if you are searching opportunity to sell, sell when a candle is closed bellow 20 SMA
--> Same with buy, buy if a candle close above 20 SMA.
Practice it in Demo account it will take time to identify the best spot to execute trade, if you only trade in Up and Downtrend with this strategy accuracy will be more than 90% .
You can expect 3 types of trend 1. Uptrend 2.Downtrend and 3. Sideways
If 200 SMA is bending little straight upward you should only find opportunity to buy not to sell and
If 200 SMA is bending little straight downward you should only find opportunity to sell not to buy
If 200 SMA is straight in the middle with indicate ranging or sideways you can find both buy and sell opportunity but be careful not to trade ranging market without proper knowledge.
But question is where to execute trade or best place to take trade? HERE use 20 SMA to take trade.
--> if you are searching opportunity to sell, sell when a candle is closed bellow 20 SMA
--> Same with buy, buy if a candle close above 20 SMA.
Practice it in Demo account it will take time to identify the best spot to execute trade, if you only trade in Up and Downtrend with this strategy accuracy will be more than 90% .
