Trade Stock Indices

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10 Pips a Day Compounding Indices Strategy

The 10 or 20 pips stock indexes price range moving average indicator strategy is used with the 15 minute and 1 Hour Indices Trading Charts. On this indices chart time frames we use the 100 and 200 simple moving average indicator.


Both the 1 Hour and 15 minute indices chart time frames will use the 100 and 200 simple moving average indicator (SMA Indicator) to determine the direction of the Indices trend.


The 1 Hour indices chart time frame checks the long term direction of the Indices trend, upward indices trend or downward indices trend, depending on the direction of the moving averages. All trades taken should be in this direction.


We then use the 15 minute stock indexes price indices chart to find the optimal point to enter trades. Trades are opened only when the stock indexes price is within 10 or 20 pips range of the 200 simple moving average indicator, if stock indexes price is not within this pip range trades are not opened.


Indices Uptrend/Bullish Market

To generate Indices buy stock indexes signals using the 10 or 20 pips moving average indicator indices trading strategy, we shall use the 1 hour and 15 minute indices chart time frame.


On the 1 hour indices chart time frame the stock indexes price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower indices chart time frame, the 15 minute indices chart time frame to generate a indices trade signal.


On 15 minute indices chart time frame, when stock indexes price reaches the 10 or 20 pips range above the 200 simple moving average indicator, we open a buy indices trade and place a stop loss 20 pips below the 200 simple moving average indicator. Stop loss can be adjusted to the amount of Pips that are suitable for your trading style but to avoid being stopped out by normal Indices volatility its best to use 20 pips stop loss.


A buy indices trade can also be opened when stock indexes price touches the 100 Simple moving average indicator, provided it is not set very far from the 200 SMA. Normally the 100 simple moving average indicator will be within the 10 or 20 pips range of the 200 simple moving average indicator.

10 Pips a Day Compounding Indices Strategy
100 and 200 Simple Moving Average Stock Indexes Indicator Buy Indices Signal


Indices Downtrend/Bearish Market

To generate Indices sell stock indexes signals using the 10 or 20 pips moving average indicator indices trading strategy, we shall also use the 1hour and 15 minute indices chart time frame.

On the 1 hour indices chart time frame, the stock indexes price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 minute indices chart time frame to generate a indices trading Signal.

On 15 minute indices chart, when stock indexes price reaches the 10 or 20 pips range below the 200 simple moving average indicator, we open a sell indices trade and place a stop loss 20 pips above the 200 simple moving average indicator.


10 Pips a Day Compounding Indices Strategy
100 and 200 simple moving average indicator Sell Indices Signal

With this indices strategy method stock indexes price will generally bounce of these levels because many Indices traders watch these levels, and open similar trades at around the same point.

These levels act as short term resistance or support levels within the stock indexes price indices charts.



Indices Profit Taking level For This Indices Strategy

With this indices trading strategy the stock indexes price will bounce and make a move in the direction of the original Indices trend. This move will range from 50 - 80 pips.

The best profit taking level would therefore be considered to be 50 - 60 pips from the 200 simple moving average indicator.

 

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