The Beginner Winning strategy

Written by Stroe Daniel
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This Beginner Winning strategy is a technique very suitable for novices, bringing them lots of profits
Actually, the strategy that we are going to talk about does not have a specific name, but we’ll call it the Beginner Winning strategy, because it is indeed a technique very suitable for novices, bringing them lots of profits. Therefore, the novice should really consider applying it, as it offers plenty of opportunities for big returns, if it is accurately put into practice.

How does it work?

Basically, the strategy requires predicting the future movement of an asset, by analyzing four financial indicators, very useful, when it comes to trading. The indicators are the following: 13 Exponential Moving Average (EMA), 26 Exponential Moving Average (EMA), 20 Simple Moving Average (SMA) and the Bollinger Band. The first three indicators are characterized by three different lines on the chart, moving around the line representing the price of the chosen asset. The Bollinger Band consists of two lines, two boundaries, between which we can encounter the three indicators mentioned above.

Before deciding to trade with the help of this strategy, it is essential to choose a broker which offers all the four economic indicators, otherwise, you will not be able to apply the technique. I recommend you Anyoption and in case you’ll need a review, check this one, Therefore, after registering with a broker complying with the necessary conditions, you can easily find the indicators, being displayed in charts, after enabling them.

Applicability

To begin with, you have to pay attention to the following things:

  • The 13 EMA crossing the 20 SMA;

  • The 26 EMA crossing the 20 SMA, and then crossing the 13 EMA.


Usually, in 95% of the cases, if these two conditions are met, the price of the chosen asset will move outside of one of the boundaries of the Bollinger Band. Afterwards, you will be able to predict which is the boundary that the asset will cross, by analyzing the direction of the movements observed within the three indicators. Basically, if the three indicators experience an overall movement going up, the asset will break the upper boundary of the Bollinger Band. If the reverse happens and the three indicators move down, then the lower boundary of the Bollinger Band will be crossed by the asset.

This strategy may seem a little bit complex, but if you actually try it, you will discover is it very easy. All you have to do is to observe the movement of the four indicators and then to act on the analysis you make. To make things even easier, each line representing the indicators has a specific color, so that you are able to recognize them quickly. Generally, all brokers show the 13 EMA in blue, the 26 EMA in light blue and the 20 SMA in red.

By making use of this strategy, you are able to take advantage of up to 75%-95% returns on investments, every time you trade. So, your potential gains are actually quite significant, when considering this technique. Do not hesitate to try it, as it offers plenty of benefits, especially for the beginners. Good luck!

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