What is a Perfect Order Strategy?
It is a strategy that refers to the moving averages for different periods arranges in sequential order. In the upward trend curve, the perfect order means that the 10 SMA line is higher than the 20th SMA, and the 20 SMA is higher than the 50 SMA line. In the downward trend curve, the 200-day SMA should be at the most elevated position.
In general, the fact that the moving average line is in a sequential order suggests that the intensity of the trend is vigorous. It indicates that the momentum is in the same direction as the trend and means that the moving average line acts as a support line.
In this strategy, it is tough to select the time of entry and liquidation. Perfect order does not occur frequently, but the basic premise of this strategy is to seize the opportunity when the perfect order first occurs or fails.
How to Use the Perfect Order Strategy?
This strategy has the advantage of being able to capture opportunities at the beginning of the trend.
1. Observe the moving average lines of the currency pair if there is the perfect order phenomenon.
2. Observe that ADX is on a rising trend, indicating at least 20 or more.
3. After the perfect order was formed for the first time, enter the positions separately.
4. Clear the position when the perfect order breaks.