Stocks 20 Pips Stock Price Range Moving Average Strategy

20 Stocks Trading Pips Stocks Price Range Moving Average Stocks 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 chart. On this stocks chart timeframes we use the 100 and 200 simple moving average stock indicator.

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

The 1 Hour stocks chart timeframe 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 min 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.

Stocks 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 chart time frame.

On the 1 hour stocks chart timeframe 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 chart time frame, the 15 min chart timeframe to generate a stock signal.

On 15 minute stocks chart timeframe, when stocks price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy stock trade and place a stop loss 30 pips below the 200 Simple Moving Average. 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 Simple Moving Average. Normally the 100 Simple Moving Average will be within the 20 pips range of the 200 SMA.

100 and 200 Simple Moving Average Buy Trading Signal - Moving Average Stock 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 chart timeframe and 15 minute stocks chart time frame.

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

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

100 and 200 Simple Moving Average Sell Stock Trading Signal - Moving Average 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 & resistance levels act as short term resistance or support levels within the stock price charts.

Profit Taking level For This Strategy

With this stock trading strategy the stocks price will bounce and make a move in 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.