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Monday, 23 November 2009 GMT
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Post of the Day: EUR/USD
Monday, 06 October 2008 08:45:59 GMT
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- Tuesday, 06 October 2009 08:57:14 GMT The Trend of the Day - GBP/USD
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- Friday, 11 September 2009 10:13:14 GMT Trend of the Day - GBP/USD
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- Tuesday, 25 August 2009 04:07:15 GMT Post of the Day: Candlestick Identification
Student's Question:
I placed a trade based on SMA 10&20 crossover which was confirmed with previous bearish engulfing pattern signal. Stop loss placed above SMA.
Power Course Instructor's Response:
That is an accurate example of how execute a trade using Moving Averages. Once the faster MAs crossover the slower MAs, a trade can be taken in the direction of the crossover...in this case, to the downside. The bearish engulfing candle that you rightly point out, provides confirmation for the Moving Average signal.
As the angle of the MAs increase and the MAs begin to fan out away from each other, it indicates that the move strengthening.
Good work...
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