How to use moving averages!!!
A moving average is used to help us forecast future prices and help us identify a trend. By looking at the slope of the moving average, we can better determine the potential direction of market prices ๐โฃ
There are two types of moving averagesโ๐ผโฃ
๐ตSimple MAโฃ
๐ดExponential MAโฃ
With the use of SMAs we can identify if a pair is trending up, trending down or ranging. The one problem with SMAs is that they are susceptible to spikes. Signals can be false.โฃ
EMAโs letโs traders know what is happening in more recent price action.โฃ
Disadvanrege of using EMAs is that consolidation periods can present fakeouts
The best use MAs in conjunction to eachother. Wait for crosses and use the MAs as a confirmation before enter into deal
GOOD LUCK๐งกโฃ
A moving average is used to help us forecast future prices and help us identify a trend. By looking at the slope of the moving average, we can better determine the potential direction of market prices ๐โฃ
There are two types of moving averagesโ๐ผโฃ
๐ตSimple MAโฃ
๐ดExponential MAโฃ
With the use of SMAs we can identify if a pair is trending up, trending down or ranging. The one problem with SMAs is that they are susceptible to spikes. Signals can be false.โฃ
EMAโs letโs traders know what is happening in more recent price action.โฃ
Disadvanrege of using EMAs is that consolidation periods can present fakeouts
The best use MAs in conjunction to eachother. Wait for crosses and use the MAs as a confirmation before enter into deal
GOOD LUCK๐งกโฃ
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.