10 Pips a Day Strategy

The 10 or 20 pips price range moving average indicator strategy is used with the 15 minutes & 1 H Charts. On this chart time frames we use the 100 and 200 simple moving average indicator.

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

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

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

Uptrend/Bullish Market

To generate buy signals using the 10 or 20 pips moving average indicator strategy, we shall use the 1 hour & 15 minutes chart time-frame.

On the 1 hour chart time-frame the price pair should be above both the 100 and 200 simple MA indicator. We then move to a lower chart time frame, the 15 min chart time-frame to generate a trade signal.

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

A buy trade can also be opened when 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 10 or 20 pips range of the 200 simple moving average indicator.

100 and 200 Simple Moving Average Technical Indicator Buy Signal

Downtrend/Bearish Market

To generate sell signals using the 10 or 20 pips moving average indicator strategy, we shall also use the 1hour & 15 minutes chart time-frame.

On the 1 hour chart time frame, the price should be below both the 100 and 200 simple MA indicator. We then move to the 15 min chart time-frame to generate a Signal.

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

100 and 200 simple moving average Trading Indicator Sell Signal

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

These areas act as short term resistance or support levels within the price charts.

Indices Profit Taking level for This Strategy

With this strategy the price will bounce and make a move in direction of the original 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.