English Forex Strategy

The Forex strategy with three moving averages (200, 600, and 21 periods) is a simple yet effective method for identifying trend changes and making trading decisions across various assets, such as currencies, cryptocurrencies, and indices. This strategy works on all timeframes, making it suitable for both short-term and long-term traders.

Moving Averages Used:

• MA 200 (200-period moving average): Represents the medium-term market trend.
• MA 600 (600-period moving average): Represents the long-term trend, filtering out weaker market movements.
• MA 21 (21-period moving average): Provides short-term signals and helps identify entry and exit points.

How It Works:

The primary signal of the strategy occurs when the MA 200 crosses the MA 600:

• Upward crossover (MA 200 crosses MA 600 from below): Bullish signal, suggesting a buying opportunity.
• Downward crossover (MA 200 crosses MA 600 from above): Bearish signal, suggesting a selling opportunity.

The MA 21 is used as a refining tool for entry points. In an uptrend (when MA 200 is above MA 600), price bouncing off the MA 21 may indicate a good buying point. In a downtrend, a bounce off the MA 21 may indicate a good selling point.

Advantages:

• Applicability to multiple assets: Works with currencies, cryptocurrencies, and indices.
• Versatility: Effective on any timeframe, from short-term (e.g., 15-minute charts) to long-term (daily or weekly charts).
• Filtering false signals: The MA 600 filters short-term movements, increasing the reliability of trading signals.