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Thread: Moving avarages
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05-08-2012, 06:45 AM #1
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Moving avarages
There are many types of moving averages. The two most common types are a simple moving average and an exponential moving average.
Simple moving averages are the simplest form of moving averages, but they are susceptible to spikes.
Exponential moving averages put more weight to recent price, which means they place more emphasis on what traders are doing now.
It is much more important to know what traders are doing now than to see what they did last week or last month.
Simple moving averages are smoother than exponential moving averages.
Longer period moving averages are smoother than shorter period moving averages.
Using the exponential moving average can help you spot a trend faster, but is prone to many fake outs.
Smooth moving averages are slower to respond to price action but will save you from spikes and fake outs. However, because of their slow reaction, they can delay you from taking a trade and may cause you to miss some good opportunities.
You can use moving averages to help you define the trend, when to enter, and when the trend is coming to an end.
Moving averages can be used as dynamic support and resistance levels.
One of the best ways to use moving averages is to plot different types so that you can see both long term movement and short term movement.
Remember, using moving averages is easy. The hard part is determining which one to use!
That's why you should try them out and figure out which best fits your style of trading. Maybe you prefer a trend-following system. Or maybe you want use them as dynamic support and resistance.
Whatever you choose to do, make sure you read up and do some testing to see how it fits into your overall trading plan.
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08-13-2012, 12:29 PM #2
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Re: Moving avarages
Moving averages either simple or EMA are very important in trading for determining the market trend. Moving averages with combination of two or more averages and their crossovers should show the users whether to enter or exit the position or not. Various combinations of moving averages is famous among many traders as per their requirement as day trader or positional traders
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08-14-2012, 03:15 PM #3
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Re: Moving avarages
if trader looking for simple and powerful indicator, moving average is suitable with them. but unfortunately many trader only know one way to analysis market use moving average. that is MA crossover, while this kind of analysis actually is the weakest method. moving average actually can used to analyze market in different approach.
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09-03-2012, 03:00 PM #4
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Re: Moving avarages
for all once to profit trading using moving averange but for a long period can not menggunakanindicator because trading is so dynamic that is always moving quickly at any time because it is trading in such a manner that uses moving averange improper usage alone even if I was not at all use these indicators because of the slow coming signal to open a position.
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04-24-2013, 08:20 AM #5
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Re: Moving avarages
I also use simple moving average along with bollinger bands and candle sticks in my trades as indicators .These help me well to analyse the market,s trends .We should do a lot of practice of moving average in demo account . We should remain patient till a clear signal because some times it makes confusions.
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Re: Moving avarages
Moving Average that calculate the value of average moving from number of specific data. Sometimes it help when we met stable strong bullish and strong bearish. It can give us big profit. But I don't think so, it will working well in sideways market.
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