21 Nov EUR CAD Above 4 Hourly 200 MA For Swing Long; 22nd Nov 2012
Following on from this post where discussion surrounded trading the 4 Hourly 200 MA, I used EUR:CAD as an example of a potential future swing long.
Price is now above the 200 MA and by midday we should have a good picture as to whether we have confirmation for a continuation of it’s recent rally where a new long position can be taken.
If I take this trade, the analysis behind it will be solely based on 200 MA, with no other factors being taken into consideration. In a way, it’s a simplistic view and I’ve not traded this method enough in the past to really understand whether it’s profitable in the long term.
Here’s the latest 4 hourly chart showing the current candle above the 200 MA, but right now there’s no definite confirmation it will stay there. By morning things should be clearer: