15 and 30 Moving Average Trading Strategy — with David Moadel hello friends and welcome to looking at the markets with David Modell I wanted to give you a strategy involving not only a moving average crossover but also a method of conformation a way to confirm I do coach a lot of people in trading and investing and by the way if you want me to help you with your trading you’re investing putting together a trading or investing plan is essential and I do help people to do that you can contact me anytime at David Modell at gmail.com so a lot of my students ask me how can I get confirmation because maybe they’re using a – moving average crossover system where they wait for the faster moving average to cross above the slower moving average before they buy and then they might wait until the faster moving average crosses below the slow slower moving average before they sell or before they short and that’s fine but they want to know you know can I get some sort of confirmation signal or indicator and do I need to put up a whole other indicators such as RSI or MACD or stochastics whatever and you don’t really have to necessarily you can use this and here’s a method that might work for you I want you to make your own decisions try it out on your own before before you decide whether to use it or not alright so what I’ve got up here is the Apple one-minute candlestick chart and I’m going to think about day trading for this video but you can use it as a swing trader as well for example if you use a daily or one day candlestick chart but right now I’m just thinking in terms of day trading or intra day trading I should say so I’ve got the one-minute candlestick chart you could put up the two minute the 5-minute whatever you like it’s all good so what I have here is a very common – moving average system I’ve got the and these are exponential moving averages which are very common commonly used for intraday traders they tend to use exponential moving averages you can use the simple moving average as well if you prefer that alright so I’ve got the slower moving average up here which is the 30 period exponential moving average and that’s blue here that’s the blue line that’s the slower moving average and then I’ve got another moving average which is a faster one which is the 15 period exponential moving average and that’s red the red line okay and so what some people do is they might just wait until the red line crosses above the blue line okay so the 15 goes up you know clearly crosses or breaks above the 30 yes so they wait until the fat the faster moving average clearly crosses above the slower one and then they might buy all right and they enjoy the ride up and then they don’t sell if they’re using this system it’s a really nice write-up and then they won’t sell until the faster moving average which is the oops which is the they wait until the faster moving average the red line the 15 clearly crosses below the 30 which is the slower moving average and then they get out and they might even decide to short at that point and enjoy the the ride down if there is one and in this case there is there there was alright and then they might you know here’s another break above so they might buy here or at least close their short position here and so on and so forth alright but some people want a source of confirmation so what you can do to add to this system or to modify it is to say ok I’m actually not going to buy or take a long position until two things happen not only am I going to wait for the faster moving average to cross clearly above the slower one but I also want to see the candlestick close above the faster one which in this case is the 15 all right so somebody might say alright I’m not going to take a long position until the the red line clearly crosses above the blue one and the candlestick has a close or a closing price clearly above the faster one which is the red line the 15 and in that I mean both of these happened at the same time here all right so you got the cross above and the candle was clearly closing above the 15 here so confirmation did indeed take place here all right and so you could have taken a long position so two conditions for taking a long position with this modified or enhanced system wait until the faster moving average clearly crosses above the slower moving average for example the 15 crossing above the 30 and and also wait until the candle the current candle closes above the faster one which in this case is the 15 all right so you need two things to happen that gives you extra confirmation that the trend is in fact upwards and that it’s breaking out now what about selling or shorting well the bearish confirmation would be wait until like we said wait until the faster moving average clearly breaks below the slower one in this case the 15 clearly crossing below the 30 and also the other condition would be to wait until the current candle closes clearly closes below the slower one which would be the 30 in this case the blue line and so you do in fact have it happening here you’ve got the faster one the faster moving average clearly crossing below the slower one the 15 below the 30 here and the current candle did in fact close definitely close below the blue line the slower moving average the 30 all right and so if you had sold here you’d be very relieved because you got to avoid all this downward price and if you took a short position a even better then you made a nice profit all right so once again to recap this modified or enhanced system you wait for two things to happen two conditions before you take a long position or close out your short position either way you wait until the faster moving average clearly breaks above the slower moving average and you wait until the current candle closes above the faster moving average and then to close out your long position and possibly start a short position if you choose to do that the two conditions would be wait until not only the faster moving average clearly breaks below the slower moving average but also you wait until the current candle has a closing price below the slower moving average which in this case is the 30 or the blue line all right so I encourage you if you want to try this out perhaps with virtual trading just to see if you like it see if it’s working for you that way you’re not risking any money because it’s just paper trading as they call it and I recommend that to my coaching students to test something out back test it if you have the software and the ability to do that and also forward test it I call it forward testing the opposite of back testing which is to virtual trade it for a little while until you’re convinced that it’s right for you that you like it you feel that it’s working more often than not working and it’s working often enough for you to be profitable and for intraday trading you can put your stop losses and all that good stuff if you want to and your profit target and I teach people how to do that so again my name is David Modell my email address is David Modell at gmail.com if you want some more coaching on this I do offer that if you like this video please give it a thumbs up on YouTube I really appreciate that leave a comment have you tried this system is it working for you or do you have something that you prefer as far as a confirmation for mation system that you like feel free to tell everybody about it in the comment section so we can create a community here and if you haven’t subscribed already for goodness sake what’s stopping you go ahead and subscribe please and hit that notification bell and that way you’ll receive updates whenever I put out more educational videos like this one thank you so much I appreciate it very much I’ll talk to you again soon
15 and 30 Moving Average Trading Strategy // Want more help from David Moadel? Contact me at davidmoadel @ gmail . com
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