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Stock Moving Average Stock Trading System Explained

20 Stock Pips Stock Price Range Moving Average Stock Trading Strategies

The 20 pips stocks price range moving average stock trading strategy is used with the 1 Hour stock chart and 15 minute stocks trading chart. On this stocks trading chart time frames we use the 100 and 200 simple moving average stock technical indicator.


Both the 1 Hour and 15 minute stocks trading chart time frames will use the 100 and 200 SMA (SMA Indicator) to determine the direction of the Stock trend.


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


We then use the 15 minute stock chart to find the optimal point to enter stocks trades. Stock trades are opened only when the stocks price is within 20 pips range of the 200 simple MA, if stocks price is not within this pip range stocks trades are not opened.


Stock Uptrend/Bullish Market

To generate buy (bullish stock trading signals) using the 20 pips moving average Stock strategy, we shall use the 1hour and 15 minute stocks trading chart time frame.


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


On 15 minute stocks trading chart time frame, when stocks price reaches the 20 pips range above the 200 SMA, we open a buy stock trade and place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Stock volatility its best to use 30 pips stop loss.


A buy stock trade can also be opened when the stocks price touches the 100 Simple moving average, provided it’s not very far from the 200 SMA. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.

Moving Average Stock Trading Strategy

100 and 200 Simple Moving Average Buy Stock Trading Signal - Moving Average Stock Trading Strategy


Stock Downtrend/Bearish Market

To generate sell (short stock trading signals) using the 20 pips moving average Stock strategy, we shall also use the 1 hour stocks trading chart time frame and 15 minute stocks trading chart time frame.


On the 1 hour stocks trading chart time frame, the stocks price should be below both the 100 and 200 SMA. We then move to the 15 minute stocks trading chart time frame to generate a stock trading Signal.


On 15 minute stocks trading chart, when stocks price reaches the 20 pips range below the 200 SMA, we open a sell stock trade and place a stop loss 30 pips above the 200 simple moving average.

Moving Average Stock Trading Strategy

100 and 200 Simple Moving Average Sell Stock Trading Signal - Moving Average Stock Trading Strategy



With this stock trading strategy method stocks price will generally bounce of these support and resistance levels because many stock traders watch these levels, and open similar stocks trades at around the same point.


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



Profit Taking level For This Stock Trading Strategy

With this stock trading strategy the stocks price will bounce and make a move in the direction of the original Stock trend. This move will range from 60 - 70 pips.


The best stock trading profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.

 

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