Moving Averages: Historical Trades

The charts below show examples of how moving averages, when confirmed by price action, can signal trading opportunities.

In the above chart we see moving averages applied to the USD/CHF currency pair. Notice the Hammer candlestick pattern that penetrates the 200 moving average (Black Line). This reversal pattern and the fact that it bounces off of the 200 moving average shows that the downside momentum is lost, and signals that a rally may follow.

Here we see a classic candlestick pattern, as only the long wicks breach below the long-term moving average (200-SMA). As it pierces the 200-day SMA on this daily chart for the USD/CHF, we see a subsequent rally of the pair.

ASSIGNMENT: Create moving averages on chart of a currency pair and place a trade based on the moving averages. Reply to this thread telling us what trade you placed and why you placed it. Feel free to upload an image of the chart to this thread.