Random article: Forex Bounce Strategy or SMA89 Break
Moving Averages as a lagging indicator, confirming trend rather than anticipating it, is considered less reliable by many. But, combining Moving Averages with Fibonacci number, and following price action around it, can give quite a powerful signal. In this case, a Simple Moving Averages on Close price, combined with Fibonacci number (89) as it period.
In short, price can either “break through” SMA89 or “bounce back” from it. But then, as can be seen in the following picture, there are many breaks as well as bounces; and not all of them are valid signals which shows profitable opportunities.
