MA - 1: Catch the big wave following the trend

Trading rules:

1. Find markets that are breaking strongly up/down

2. Add MA 5, 10, 20, 40, 200 to see which line is being respected the most and most closely followed by the price

3. Once we have found the MA line closest to the price, we wait for the price to return to test this line

4. Enter after a reversal candlestick pattern when the price tests the MA

For example:


Price gaped up and broke out very strongly. At this time, we add the above ghost lines in turn, and we see that the 20 ghost line is closest to the price. Wait for the price to pull back to the 20 ma line and form a reversal candlestick pattern to buy up. We see that all the times the price tested the 20 ma line turned into good buying opportunities.

When the price closes below the 20 ma line, close the order and stop buying, because the upward momentum is no longer strong. Thus, the 20 ma line also becomes a tool for trailing stop, especially for US stocks, there will be very long rising waves. Holding buy orders until a candle closes below the 20 ma line will help you catch these big bullish waves.

MA Strategy - 2: Going against the trend

Trading rules:

1. Find markets that are breaking strongly up/down
2. Add 2 ma 5 or ma 10 lines to the chart
3. Make sure the price doesn't touch the 5 or 10 ma line more than once in the last 10 bars
4. When the price closes below 5/10 (in case of an uptrend), SELL, stop loss above the top of the candle or the top of the neighboring candle cluster.

When the price closes above 5/10 (in case the trend is down), then BUY, stop loss below the bottom of the candle or the bottom of the neighboring candle cluster.

For example:


The price has a very strong gap, we add the ghost line 10 and see that the price has never touched this line. So the condition is satisfied. When there is a candle closing below ma 10, SELL immediately with SL above the nearest top


We see the price lose momentum rapidly and cannot go above the ma 10 times. Continue to hold the order and drag the SL down along the ma line 10.


Finally the gap is filled

MA - 3: Trading by Crossovers

Buy when ma line 10 crosses ma 20 (or when ma 50 crosses ma 200)


Sell when ma 10 cuts to ma 20 (or when ma 50 cuts to ma 200)

For example: