Introduction:
I chose today one of the most important technical tools that investors rely on in the long term and also adopted by most analysts in their analysis of all financial markets and most of the graphs you find in it because some consider the border and the most important between the ups and downs for a share, commodity or currency and use shall be for the daily time frame and above.
The name of this indicator is (The moving average 200).

There are many experts and analysts who rely on buying and selling decisions on this average without other tools and that is due to its credibility and strength in all market conditions, I have tried this average for 6 months at different time periods such as four hours and hour and others and found many positive and negative observations in the work of this indicator on different periods and that we are talking about the currency market also found a difference, even if simple results or credibility from one pair to another.

My way of taking advantage of the 200 SMA:
First, I will explain to you quickly the concept of technical averages and indicators for analysts and how they will be used in their trades and decisions based on the amount of Confidence in the indicator and trading method and they are of two types:

I- Decision-making indicators: It is any indicator, medium or technical tool that helps and supports the decisions of buying or selling, based on the original strategy of the trader, but it is not a major decision-making and it helps only in the decision.

II- Key decision-making indicators: Are the indicators on which the strategy is based, which determines the buying or selling decisions, which are the basis of the strategy and the decision-making process only with them.
My talk on this subject will include only the first type, and now let's start by explaining the indicator and settings.

1- Settings: Period = 200 // Shift = 0 // Apply = Close // Method = Simple

2- Time frame:
I will rule out the daily time frame because it is the basis, and there is no debate about it, because it has few investors and signals
The best time frame after daily is the hourly It is suitable for the average trader and the duration of the transactions starts from day and extends to about a week and often the targets of the transactions start from 100 points.
My favorite time frame is five minutes because It is suitable for scalper The duration of the deals starts from 5 minutes and extends to approximately one hour and The targets start from 30 points and extend to 100 points

3- Best currency pairs: Here you will find the best pairs of currencies performing with the 200 moving average , noting that the best mentioned at the beginning with an estimate of the success of the indicator in giving a correct signal and that from the experience, which stretched for nearly 6 months
EURJPY = 95%
EURUSD = 93%
EURCHF = 90%
GBPUSD = 85%
GBPCHF = 80%
GBPJPY = 80%

4- Types of signals:
The signals differ in terms of the number of opportunities from one currency pair to another, as they vary from the time frame of the hour to about 5 minutes.
On the hourly chart we have between 3 to 5 chances per day and on the 5 minutes chart we have between 10 to 15 chances per day. And we must know that the moving average plays the role of resistance and support, so we must deal with it on this basis and apply the concept of support and resistance when buying or selling.

As for the types of signals entering the deal are two types:

A- Rebound signals:
I mean the price bounce when touching or near the moving average, and here is the buy or sell according to the direction of the pair.

B- Breakthrough signals:
It occurs after the breach of the price of the moving average and the buy or sell with the break up or break down.

Examples of the moving average in the H1:


Examples of the moving average in the time frame of 5 minutes:


5- The way to enter and exit the opportunity:
A- Rebound signals:
The Entry for H1: The entry at the touch of the price of the MA 200 regardless of the consideration for anything else, such as trend or resistance or support points and do not prevent entry before the point of convergence of the average price of about 10 points, the entrance is direct and we do not wait for the opening of a new candle.
A new transaction is entered when the price is repeated for the MA and the maximum number of entries is 3 times and the stop is separate for each entry.
Stop loss: The SL for this method shall be 50 pips from the entry as maximum, or as the opening of any candle below the average line if it is bullish and above the average line if it is bearish.
Take profit: The TP is within 100 pips as the first target and may be up to 500 points and prefer to move the stop loss 30 points whenever the currency pair moves 50 points in favor of the deal.

The Entry for 5 minute: The entry at the touch of the price of the MA 200 regardless of the consideration for anything else, such as trend or resistance or support points and do not prevent entry before the point of convergence of the average price of about 5 points, the entrance is direct and we do not wait for the opening of a new candle.
A new transaction is entered when the price is repeated for the MA and the maximum number of entries is 3 times and the stop is separate for each entry.
Stop loss: The SL for this method shall be 30 pips from the entry as maximum, or as the opening of any candle below the average line if it is bullish and above the average line if it is bearish.
Take profit: The TP is within 30 pips as the first target and may be up to 100 points and prefer to move the stop loss 20 points whenever the currency pair moves 30 points in favor of the deal.

B- Breakthrough signals:
The Entry for H1: Break the moving average and enter with the test.
Stop loss: Like what we explained in (Rebound signals).
Take profit: Like what we explained in (Rebound signals).

The Entry for 5 minute: Break the moving average and enter with the test.
Stop loss: Like what we explained in (Rebound signals).
Take profit: Like what we explained in (Rebound signals).
We have finished explaining the correct way to use the 200 SMA and If there is a query, please put it in the comment box so that I can answer it.
Good luck to all
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