Base 150 Strategy: Trading Moving Average Rebounds
The “Base 150” strategy is designed to spot early signs of a reversal and enter in the direction of a breakout. It uses a combination of slow Moving Averages (150, 365) to define major support/resistance zones and fast Moving Averages (6, 25) to confirm entry signals.
Strategy Profile
Timeframes
H1, H4, D1
Pairs
Majors (EUR, GBP)
Indicators
4 MAs
1. Indicator Setup
Apply these four Moving Averages to your chart:
- Fast MAs: Period 6 and Period 25.
- Slow MAs (Base): Period 150 and Period 365.
2. Long Entry (Buy) Rules
- Breakout: Price breaks above the Slow MA (150 or 365).
- Pullback: Price touches the Fast MA 6 (first touch).
- Confirmation: Wait for a rebound signal on a lower timeframe.
3. Short Entry (Sell) Rules
- Breakout: Price breaks below the Slow MA (150 or 365).
- Pullback: Price touches the Fast MA 6 (first touch).
- Confirmation: Wait for a rebound signal on a lower timeframe.
Trade Management
- Stop Loss: Place behind the local high/low of the breakout candle.
- Take Profit: 2x the distance of the Stop Loss (Ratio 2:1).
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