CFD Trading 20 Pips CFD Price Range Moving Average CFD Strategy

The 20 pips cfds price range moving average cfd strategy is used on the 1 Hour cfd chart and 15 minute cfd chart. On the 1 hour and 15 minutes cfd chart timeframes we use the 100 and 200 simple moving average cfds technical technical indicator.

Both the 1 Hour and 15 minute cfd chart timeframes will use the 100 and 200 SMA (Simple Moving Average Indicator) to determine the direction of the CFD market trend.

The 1 Hour cfd chart timeframe checks the long term direction of the CFD trend, upward or downward trend, depending on the direction of the moving averages. All cfds trades opened should be opened in this cfd trend direction.

We then use the 15 minute cfd chart to find the optimal point to enter cfds trades. CFD trades are opened only when the cfds price is within 20 pips range of the 200 simple moving average, if cfds price is not within this pip range cfds trades are not opened.

CFD Uptrend - Bullish Market Trend

To generate buy bullish cfd signals using the 20 pips moving average CFD Trading strategy, we shall use the 1hour and 15 minute cfd chart time frame.

On the 1 hour cfd chart timeframe the cfds price on the chart should be above both the 100 and 200 simple moving average. We then move to use a lower cfd chart timeframe - the 15 minute chart timeframe to generate a cfds trading signal.

On 15 minute cfd chart timeframe, when cfds price reaches the 20 pips range above the 200 SMA, we open a buy cfd 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 CFD trading volatility its best to use a reasonable stop-loss level.

A buy cfd trade can also be opened when the cfds price touches the 100 simple moving average, provided the cfd price is not very far from the 200 simple moving average. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.

100 and 200 SMA CFD Buy CFD Signal - 20 Pips Moving Average CFD Strategy

CFD Downtrend/Bearish Market

To generate sell (short cfd signals) using the 20 pips moving average CFD Trading strategy, we shall also use the 1 hour cfd chart timeframe and 15 minute cfd chart time frame.

On the 1 hour cfd chart timeframe, the cfds price should be below both the 100 and 200 SMA. We then move to the 15 minute cfd chart timeframe to generate a cfd Signal.

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

100 and 200 Simple Moving Average CFD Sell CFD Signal - 20 Pips Price Range Moving Average Strategy

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

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

Profit Taking level For This CFD Strategy

With this cfd strategy the cfds price will bounce and make a move in direction of the original CFD trend. This move will range from 60 - 70 pips.

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