Crossing Moving Averages

I want to go over moving averages and what it means when they cross each-other's paths...I won't explain moving averages because the word is linked to an attachment that will give you a very good explanation on what they are. I want to focus on the phenom of crossing moving averages or MA and what that means for traders and how you should approach your entries or exits based on them.

I will use the NZDJPY on a 60min time frame as my example:
On the chart we can observe the Slow MA crossing under the Fast MA which is circled in white and labeled 1. This is a signal that the price of the instrument is ready to make a move higher and/or the trend is ready to change; but because all indicators are lagging we also see that the jump happened some hours before the indicator could show it. Normally a trader might consider this the signal for he or she to jump in the trade long but if we are patient we see that this is a 52-fake-out. For this to be a true trend change we would need to see candles come back down into the Fast MA for a test; after the test the price should close above the MA and move on to continue higher with both Moving Averages under the candles and the Slow Moving Average should remain underneath the Fast Moving Average until another crossover...

 Which leads me to the second half of this lesson.

The second crossing of the Moving Averages on the chart above circled in white and labeled 2 is the reverse of what I explained in the first paragraph. When the Slow Moving Average crosses over the Fast Moving Average we want to see candles comeback up to test the Slow Moving Average but close below it and continue lower; as we observe in the first blue highlighted box (10/14) where a beautiful Doji Candle was posted right at the Slow MA and then a gorgeous tumble down came next. A sell at this point is the proper way to trade a Moving Average Crossover.

Though they are easy to spot, it is very easy to be fooled and trapped into a position which can presenting false signals which is what we observed in the first demonstration of an MA crossover. Be patient and let the trades come to you; more so, know and accept when you're wrong. Don't let a lagging indicator be the reason why your account balance suffers. 

#GirlsWhoTrade, It's a Movement

I think that women in the finance industry are often over looked and I like to believe that having well rounded networks of people to work with is better for business and for personal growth. So to stay true to my doctrine I want to take the time to write the first ever #GirlsWhoTrade post and I'm so happy to be writing it about a friend of mine, Jennifer Whiskeyman.

Jennifer is the constantly on the go mom you could recognize from any family car commercial where the mother has 2 eyes on the driving cars around her and 2 eyes + a smile on her face as she chats  through the rear view mirror with her 2 kids on their way home from school and karate practice. Jen and actually met on Twitter through our common interests in trading and finance. She, being a wife of 20 years (September marks the anniversary), and a complete residential CEO, found time to read my tweets and blog posts I write here everyday. Just when I though I had the most interesting life ever here comes Jennifer with her fast talking and wittiness that showed me there was more to this shy Scorpio. In 1998 Jennifer graduated from University of Maryland University College with a BS in Business Management. That's quiet an accomplishment for the mother of a 9 yr old, and in a full-time role as residential manager.
In 2005 the family moved to El Paso, Texas and Jennifer became an entrepreneur making herself the owner of a marketing franchise where she sold advertising to local businesses and home owners, while at the same time she was an active City Counsel-Woman. This lasted until 2007 which is when she started dabbling in the financial markets. She and I shared this because this is around the same time I started trading. Before long Jen had won a fellowship in 2008 from AFCPE , which was an opportunity which allowed  FINRA to  award accreditation to army families so they could have mobile careers. Soon after in 2009 Jen was working for department of defense contractors which she thrived in until 2013 when she retired from her position. In between all this Jennifer managed to have 2 more children and survived 3 military deployments of her husband.
Jen is one of the most flexible people I know; When asked what she thought her future might bring she simply says, "It quite frankly depends on where the family ends up next,"Although moving affects her access to trading she always wants to be in the markets. She feels successful now and wants to become more successful and she thinks reading more often could help her improve. Jen invests using strategies she's comfortable with and believes that once a trader is good with a strategy, she should stick with it. She prefers trading an Iron Condor Options Strategy. Jen primarily trades stock options and never trades 100% of her account. So contrary to myself, lol. And I am trying to teach her how to trade the FOREX and Commodities Markets.
So this is the wonderful Jennifer Whiskeyman, my friend, and a part of #GirlsWhoTrade.

Jen also writes a blog of her own where she aims to reach the wonderful women who make this World go around. Be sure to check it out at www.tomygirlfriends.com