1. Let’s say we want to use the golden crossover strategy for a long-term trade on the EUR/USD forex pair.
2. We begin by plotting the 50-day and 200-day simple moving averages (SMAs) on our price chart.
3. We then wait patiently for the 50-day SMA to cross above the 200-day SMA.
4. Once the crossover has occurred, we place a buy order at the market price.
5. We then set our stop-loss at a level below the 200-day SMA.
6. We also set our take-profit order at a level above the 50-day SMA.
7. Once our trade is triggered, we wait patiently for the price to reach our take-profit level.
8. Once the price hits our take-profit target, we close our trade and collect our profits.
9. We then wait for the next crossover to occur before entering another trade.
10. This strategy can be used on any timeframe, but we prefer to use it on the daily or weekly timeframe.
11. This strategy can also be used on any financial instrument, not