Moving Average Silver Trading System Explained
XAGUSD 20 Pips Moving Average XAGUSD Trading Systems
The 20 pips xagusd trading price range moving average silver trading strategy is used with the 1 Hour silver chart and 15 minute xagusd trading chart. On this silver chart time frames we use the 100 and 200 simple moving average xagusd trading indicator.
Both the 1 Hour and 15 min silver chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the Silver trend.
The 1 Hour silver chart timeframe checks the long term direction of the Silver trend, upward or downward trend, depending on the direction of the moving averages. All xagusd trades taken should be in this silver trend direction.
We then use the 15 min silver chart to find the optimal point to enter xagusd trades. Silver trades are opened only when the xagusd trading price is within 20 pips range of the 200 simple MA, if xagusd trading price is not within this pip range xagusd trades are not opened.
XAGUSD Uptrend/Bullish Market
To generate buy (bullish silver trading signals) using the 20 pips moving average Silver strategy, we shall use the 1hour and 15 min xagusd chart time frame.
On the 1H silver chart time frame the xagusd trading price of the silver chart should be above both the 100 and 200 simple moving average. We then move to a lower silver chart time frame, the 15 min chart time frame to generate a xagusd trade signal.
On 15 min silver chart time frame, when xagusd trading price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy silver 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 Silver volatility its best to use 30 pips stop loss.
A buy silver trade can also be opened when the xagusd trading 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 Strategy
Silver Downtrend/Bearish Market
To generate sell (short silver trading signals) using the 20 pips moving average Silver strategy, we shall also use the 1H silver chart time frame and 15 min xagusd chart time frame.
On the 1H silver chart time frame, the xagusd trading price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 min silver chart time frame to generate a silver trading Signal.
On 15 minute xagusd trading chart, when xagusd trading price reaches the 20 pips range below the 200 Simple Moving Average, we open a sell silver trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple Moving Average Sell Silver Signal - Moving Average Strategy
With this silver trading strategy method xagusd trading price will generally bounce of these support and resistance levels because many silver traders watch these levels, and open similar xagusd trades at around the same point.
These support and resistance levels act as short term resistance or support levels within the xagusd trading price charts.
Profit Taking level For This Strategy
With this silver trading strategy the xagusd trading price will bounce & make a move in direction of the original Silver trend. This move will range from 60 - 70 pips.
The best silver trading profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.
