Fast moving Averages crossover Stragies vs Simple moving Averages crossover Stragies
Use time frame and currency which respond the best (1 hour, 1 day… or any other).
Indicators: (multiple of 7) 7 SMA, 14 SMA, 21 SMA.
Entry rules: When 7 SMA goes through 14 and continues through 21, BUY/SELL in the direction of 7 SMA once price gets through 21 SMA.
Exit rules: exit when 7 SMA goes back and touches 21 SMA.
Advantages: again it is an easy set up and does not require any calculations or other studies. Can produce very good results during strong market moves, the system also can be easily programmed and traded automatically.
Disadvantages: System requires periodical monitoring according to a chosen time frame. SMA indicator signal can be confirmed after the current price bar has been fully formed and closed. In other words, when SMA stops changing and the signal is fixed, traders may rely on such information to open a trade.
You may exit using rules given in the strategy: when 7 SMA touches 21 SMA.
Or exit whenever you feel that profit is right to keep.
Another option would be: after +20 pips you may try moving a stop loss to break even and allow a trade to run freely; and once 7 SMA crosses 14(!) SMA exit a trade.
To confirm a signal try using, for example, Parabolic Sar indicator with settings (0.1, 0.01) or possibly (0.1, 0.005) depending on a currency pair you choose to trade with – just test which one performs better.