MA Trading System Explained

XAGUSD 20 Pips Moving Average XAGUSD Strategies

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

Both the 1 Hour and 15 min chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the trend.

The 1 Hour chart time-frame checks the longterm direction of the trend, upward or downward trend, depending on the direction of the moving averages. All trades taken should be in this trend direction.

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

XAGUSD Uptrend/Bullish Market

To generate buy (bullish 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 chart time-frame the price of the chart should be above both the 100 and 200 simple moving average. We then move to a lower chart time frame, the 15 min chart time frame to generate a trade signal.

On 15 min chart time frame, when xagusd trading price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy 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 trade can also be opened when the 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 & 200 Simple Moving Average Buy Trading Signal - Moving Average Strategy

Downtrend/Bearish Market

To generate sell (short trading signals) using the 20 pips moving average Silver strategy, we shall also use the 1H chart time frame and 15 min xagusd chart time-frame.

On the 1H chart time frame, the trading price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 min chart time frame to generate a silver trading Signal.

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

100 & 200 Simple Moving Average Sell Signal - Moving Average Strategy

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

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

Profit Taking level For This Strategy

With this silver strategy the trading price will bounce & make a move in direction of the original 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.