Watch the market, and wait until the price has moved away from the moving average. There is no default distance the price should move, but the price bars should no longer be touching the moving average. For the EUR the recommendation is approximately 10 ticks.
Moving Average Bounce
By Adam Milton, About.com Guide
Wait for Price and Moving Average Divergence
Wait for Price and Moving Average Divergence
Prev
- Introduction
- Open a Chart
- Add an Exponential Moving Average
- Wait for Price and Moving Average Divergence
- Wait for Price and Moving Average Convergence
- Wait for Price and Moving Average to Touch
- Enter your Trade
- Wait for your Trade to Exit
- Repeat the Trade
- Trading Reports
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