EUR/USD 1H S/R and Moving Averages

An article by Gus

Hello every one hope you are starting to enjoy the weekend, just wanted to update on a few of the techniques I have been using to better my trading. As many of you know the 4 hour breakout is still my hands down favorite method of trading, but sometimes you want something more than relying on one method. That is why I love using support and resistance levels something that is tried and true on forex, stocks, etc.

Here is a quick screenshot of what I mean by using moving averages mixed with support/resistance lines:

So I have my set of support and resistance lines which change every so often but for the most are pretty solid lines in history, I do not make all these lines and have to thank my good friend Nick over at Forex4Noobs.com for taking the time to lay them out.I will be writing a full breakdown of the support and resistance lines later this weekend so I can explain where they go and how to place them.

On top of the s/r lines I also use moving averages to give me a second confirmation that I need to enter a trade. I usually use a mix of 4 moving averages that give me entry and exit confirmations for trades, but I have decided to go with the two entry moving averages for this post. The blue line is a exponential moving average (5) the yellow live is an exponential moving average (13).

I will enter a trade if it is breaking one of the support and resistance lines; and also is the blue (5) moving average crosses the yellow (13) moving average. In the screenshot above I show how in the last two days we have had two opportunities to trade this method and be successful.

I will be posting more on this method since it has been successful but I want to show everyone that moving averages are not another dumb indicator, as long as you don’t go overboard they do help.

Have a great weekend,

Gus