Originally Posted by Nicola A

OK
I am new but I wil explain as best I can my GBPJPY trades today.
This is the 15 minute chart.
The pink line is the 15minute 20 moving average and the red line is the 1hr 20 moving average.
The 1hr 20 ma is the king of the moving averages and moves using it get more pips than the 15 min ones.

Moving averages are floating lines of support and resistance. When the price gets to them it either bounces off triggering a short or long (depending on the trend and the order the moving averages are in). or the price will cut through and be supported by or held down by the moving average, also very tradeable.

The black arrows show my entry and exits.
I missed the first bounce off the 1hr 20 this morning and the 15min averages had not crossed for a down move. I got in when it dropped off the second time and the pink and pale blue moving averages crossed (the magic cross) for a move down.


I hope this helps
Nicola