How to Trade Around Moving Average Line

Another opportunity to trade forex is when the price is close enough to the Moving Average Line.
There are two possibility:
1. The price cross MA Line from below
2. The price cross MA Line from above

If price cross moving average line, wait until the candle stick closed and than follow this step
1. Always trade with trend direction. Let's assume the market is downtrend
Picture below is EURGBP weekly price movement. EURGBP is in downtrend from the early 2014 until August 2015.

Do not try to open buy position.


2. If the candle stick after cross the MA line from below than close again below the MA line, be ready to open sell position in the next candle.
I'll use the same chart

3. If the candle stick after cross the MA line from below than close above the MA line, ignore this initial breakout and wait until the next candle stick to perform bearish engulfing. If the next candle stick do not perform bearish engulfing, you must avoid this trade until another trade setup.

Enjoy your trade!