DislikedWell see thats the problem I havent quite figured out how to use the EMA for exit strategy... the two EMA are very laggy indeed and by the time they cross back to show trend reversal it will be too late as the price would have retracted to my first initial position actually ending me up with a loss. I do believe the exit is the hardest part and i havent quite figured it out yet. Right now the exit i am going to try is if the price breaks a support level and closes above EMA i should close.
I have been trading forex for a bit longer than 2 years...Ignored
Yes that can be the main problem with moving averages. The longer term ones can take quite some time to react to the price movement. The shorter the MA then obviously the more reactive they will be to price, but also more false movement. Jibjib I am sure you will optimise your exit criteria as time goes by, trial and error and forward trading are the only ways that you will find out what does and doesnt work and that all takes time, sometimes months and months.
The problem some traders have is they try something out, they hit a drawdown period and take some losses, and then they have the mindset of hey this doesnt work, so they start the search for something new that does, come to the conclusion after a drawdown period and the cycle continues, im sure that may sound familiar to more than a few traders out there ?
I do like moving averages but again I tend to use them purely for directional purposes only, PA will be my entry and exit. A simple trend line will do the same thing on a chart for direction but MA's can make it simply more visual if you dont mind them being on your chart.
Every trader will find what works best for them, the battle can be like you say jibjib is staying around long enough. Too many try and master everything at once and go nowhere. The one thing I would say is find something that works for you and stick with it for little while. You only need to master one aspect, and if that can make profit for you on a constant and repetitive basis then that one aspect is all you need along with a little patience and discipline of course
Once you believe that you have mastered that one aspect 100% then look to add another tool to your trading toolbox.
I think I have said this numerous times before, but when I started out trading one of my trainers once said to me "keep it simple, its the simple things that work the best" and like every aspiring trader I went off to learn as much as I could about all things trading including every indicator known to the trading world, looking for that elusive combination of what may work.
And what do you know..... I eventually came to the conclusion, that yes... indeed it is .... the simple things that work the best.
Keep it simple, and do what works for you.
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