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If you are not using moving averages then it may be something you would want to consider adding to your trading strategy. Not only will it help you become ...

For example, a 10-day simple moving average takes the last ten closing prices and divides them by ten.

Let's illustrate the problem mentioned in the last sentence of the paragraph above on an actual example. During the time period number 1 the actual price ...

The Moving Average Indicator Guide: How it improves your trading strategy and helps you beat the markets

This chart shows a 50-period SMA, along with an exponential moving average (EMA) and a weighted moving average (WMA) on a one-minute stock chart.

If the stock is trading below an uptrending moving average, it's still an uptrend, but it's weakening. A downtrend occurs when the price is below the moving ...

On many of those occasions, in fact, the stock market rebounded almost immediately after the S&P 500 fell to below its moving average.

For instance, a 50-day moving average crossover above a 200-day moving average is a stronger signal than a 10-day moving average crossover above a 20-day ...

Finding out the current trend you need to go to the H4 chart and construct 3 simple moving averages (period 7 and 55). As is seen in the figure above, ...

Trends don't go on forever so expect a deep pullback or consolidation after good trends. Use the moving averages to identify trading opportunities and ...

Sell when the prices approach the long-term moving average from the bottom but buy if they go beyond the long-term moving average.

As you can see, during bull markets this model tends to underperform because it moves to cash too quickly. It acts a little skittish and doesn't hold on.

trend. The relative strength index, or RSI, is an oscillator that attempts to measure excessive sentiment in a trending stock. If a stock reaches 70 out of ...

This is the model, fairly simple in its design, and easy to remember. It has everything a trader wants in a model, except the quick 2 pip scalps, ...

Important tip: you must be accurate when drawing these trend lines! How to do it perfectly? As you hover each candle you will notice the lowest price of it ...

Even if you're a complete beginner in trading, you must have come across the term "scalping" at some point. Scalping in the foreign exchange market is a ...

If we look at the 1978–2017 period, we see that this trend model didn't start to outperform until 2003 or so:

For each backtest, I'm going to present the results in a chart and an entry-exit table, of the type shown below (10 Month Moving Average Strategy, ...

Moving averages are the bread and butter of the trend trader. This simple indicator uses a progressive average price for a set number of past day (or hours, ...

If you are not using moving averages then it may be something you would want to consider adding to your trading strategy. Not only will it help you become ...

Do you see where the MA crossover strategy would get completely slaughtered? Well… (down-arrows stand for shorts, up-arrows for longs).

Assume 5 people are sitting on a nice sunny beach enjoying a nice chilled bottled beverage. The sun is so bright and nice that each one of them end up ...

The following two charts show the performances for moving average periods of 5 months and 1 month respectively:

We might as well shorten the moving average period to 10 months, to improve the performance even more. The following chart shows the strategy's performance ...

Apart from providing support/resistance levels, they can be used to target a trade as price usually goes back to test them, as it happened this week (weekly ...

A better way to avoid whipsaws involves using more than one moving average at a time. Signals are given by a shorter-term MA crossing above or below a ...

During these times traders should stand aside and only trade when the moving averages are in alignment again.

When this happens, the SAR is then automatically plotted above the price – indicating a down trend is in effect.

Traditional moving average buy and sell signals would be given where the OB/OS indicator breaks up and down through the zero line respectively.

It doesn't make sense for us to use 30 months, however, because we know, per our earlier rule, that shorter moving average periods will ...