EUR/USD S/R lines and moving averages

An article by Gus    No Comments

Hi everyone, hope you all had a great week so far, this will probably be my last trade for the week but I just had to take it. I have been using support and resistances lines since I first started trading, because they are just proven to work. I will post later today with the exact lines that I use, most of them were given to me by my good friend Nick over at Forex4Noobs.com great web site for beginners, highly recommend it.

But on top of these lines I have been using my favorite combination of moving averages which I have also used since the beginning of this blog. The combo is a set of 4 exponential moving averages set on the close price of the previous candle : 5, 13, 26, 62. I have had great luck so far with them and will keep using them for a while.

Here is a quick screen shot of them in action today:

I circled the area where the big push came for me this morning. It crossed through the 1.42060 and 1.42350 resistance lines and even shot through the 1.42810. The last line it crossed which is the neon green one of the screen shot it encountered a lot of resistance, which is where I got out. But by looking at the last hour candle the yellow one we see how it broke not only through the lines but also the first three moving averages (5, 13, 26) and eventually the fourth moving average (62).

This made for a nice 261 pips  this morning, I am done for this week and extremely happy. I will be posting more on the moving averages and support and resistance liens later today so stay tuned for that. Going to the basics is always the best way to trade, if it works no need to change it.

Good luck on the rest of the day to everyone,

Gus