This is a trade that will work about 90% of the time.

Most consistent time frames are 5 min, 15 min, 1 hr, 2hr, 4 hr, and daily.

The higher time frames will bring more pips.

Just plot a 200 Simple Moving Average (SMA) on your chart.

If 200 SMA is going down, and price crosses it going up, the price will come back to touch it. Look for a good down candle to enter short and get out when it touches the 200 SMA.

If 200 SMA is going up, and price crosses it going down, the price will come back to touch it. Look for a good bullish candle to enter long and exit when it touches the 200 SMA.

I also need to point out that there needs to be some distance gained by the price going over/under 200 SMA before you enter.

Another rule for this: If 200 SMA starts to change direction while you are in the trade (it is ok if it is flat), get out of the trade! If you went long at the start of the bullish candle going back toward the 200 SMA, and while you were making your way up, the 200 SMA started to turn down (it is ok if it is flat), get out immediately!

Another rule: if there is a news event that makes price “blow through” a 200 SMA at a huge distance in a super short time, like 1 minute, it will most likely not come back to the 200 SMA.

200smadaily

cadchf5min