By looking at the price action, it looks like we are at the beginning of a downtrend and we get ready to apply our trend following strategy.
Moreover, we have a confirmed setup because:
- The price is below the 54 Moving Average
- The price just broke down the green horizontal line drawn by the Advanced Signal Bars
Because of this, we place our order with a 1:1 Risk-Reward.
A little secret: if you want to learn how to use moving averages in forex, especially for trend trading, then try to increase their length.
They will show you the bigger picture! (That’s why we chose 54 for our Moving Average.)