The Average Intersection strategy is named for the two Simple Moving Average (SMA) indicators it uses. Set the chart's time frame between five minutes and one hour.
The indicators work together to show whether the asset is trending up or down. When the two lines cross that signals a strong shift in trend.
Sell Trade: When the SMA (4) crosses the SMA (60) from above the trend is down, open a Sell trade. Set the Stop Loss at the recent high. Close the trade when the line cross again.
Buy Trade: When the SMA (4) crosses the SMA (60) from below the trend is up, open an Buy trade. Set the Stop Loss at the recent low. Close the trade when the line cross again.
This is a basic strategy traders of all levels can use.
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