Hi Everyone,
How can I add a SMA of the Momentum Indicator in the subwindow, MT4 platform?
Drag and drop is not working!
Thanks
Jozo
Printable View
Hi Everyone,
How can I add a SMA of the Momentum Indicator in the subwindow, MT4 platform?
Drag and drop is not working!
Thanks
Jozo
Hi Jozo,
Drag and drop is working: drag the MA indicator from navigator window to separated window with Momentum indicator, then on the parameter page click on "apply to" drop down menu and change from close to indicator data. I just created this very small video - you can watch and see :
http://youtu.be/0TP-Tt3FV9s
==========
Besides, you can use MACD indicator signal line of this indicator is SMA if I remember:
Attachment 1463
==========
Besides, you were talking about SMA of Momentum ... but as far as I know - this is similar with MACD indicator. This is from Achelis - "Technical Analysis from A to Z"
==========Quote:
Overview
The MACD ("Moving Average Convergence/Divergence") is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD was developed by Gerald Appel, publisher of Systems and Forecasts.
Interpretation
The MACD proves most effective in wide-swinging trading markets. There are three popular ways to use the MACD: crossovers, overbought/oversold conditions, and divergences.
Crossovers
The basic MACD trading rule is to sell when the MACD falls below its signal line. Similarly, a buy signal occurs when the MACD rises above its signal line. It is also popular to buy/sell when the MACD goes above/below zero.
Overbought/Oversold Conditions
The MACD is also useful as an overbought/oversold indicator. When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist vary from security to security.
Divergences
A indication that an end to the current trend may be near occurs when the MACD diverges from the security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought/oversold levels.
As I know - some coders and traders are using MACD idnicator together with martingale systems/EAs because they consider it as universal indicator which can help to save the deposit (and money).
There is some other way - you can use New FFx standard indicators created by FerruFX
In this case - you will have everything (all standard indicators) in separate window in multi symbol way. This is example with SMA:
Attachment 1464
To use those FFx indicators so you need "to play" with the following settings/inpoits of those indicators:
- Timeframes (delete some timeframes from indicator's inpout - I am using just 4 timeframes
- Candles_per_TF - I am using 11, or 9, or 14 (because I want to see indicator for all my selected timeframes in separate window).
Just a small video about 200 SMA :
Forex Trading the 200 Moving Average
The 'Big Daddy' of Moving averages is the 200 period moving average. We are going to examine the roll of the 200 period simple moving average (SMA) as it relates to a couple Forex currency pairs.
http://youtu.be/EogHLe4BDPo
About SMA - we can read this good article on babypips : SMA vs. EMA :
Attachment 1584
By now, you're probably asking yourself, which is better? The simple or the exponential moving average?
First, let's start with the exponential moving average. When you want a moving average that will respond to the price action rather quickly, then a short period EMA is the best way to go.
These can help you catch trends very early (more on this later), which will result in higher profit. In fact, the earlier you catch a trend, the longer you can ride it and rake in those profits (boo yeah!).
The downside to using the exponential moving average is that you might get faked out during consolidation periods (oh no!).
Because the moving average responds so quickly to the price, you might think a trend is forming when it could just be a price spike. This would be a case of the indicator being too fast for your own good.
With a simple moving average, the opposite is true. When you want a moving average that is smoother and slower to respond to price action, then a longer period SMA is the best way to go.
This would work well when looking at longer time frames, as it could give you an idea of the overall trend.
Although it is slow to respond to the price action, it could possibly save you from many fake outs. The downside is that it might delay you too long, and you might miss out on a good entry price or the trade altogether.
An easy analogy to remember the difference between the two is to think of a hare and a toirtoise.
How to Configure 5-13 EMA Channel Offset Trading System in Metatrader 4
Here is a simple approach to Configure 5-13 EMA Channel Offset Trading System in Metatrader 4 without writing a single piece of code. A sample EURUSD 15 min chart in Broco Software (Metatrader 4 Platform). Just check out the video about how to configure the trading system
Buy and Sell Rules are Simple:
- Buy if the candle closes above the EMA Offset line(blue)
- Sell if the candle closes below the EMA offset line(red)
- Trailing stop loss is Red line in case of Buy Signal and Blue line in case of Sell signal
http://youtu.be/giYapsQwLD8
200 Moving Average Part 1 of 4
Stock chart analysis of 200 moving average
http://youtu.be/5PzOJ1wYWh4
21 & 55 Moving Average part 2 of 4
Part 2 is about 21 and 55 Moving Average with the relation with 200 moving average for stock Chart Analysis
http://youtu.be/1qvT9az4P_Y
5 & 10 Moving Average - Part 3 of 4
Part 3 of moving Average stock chart analysis
http://youtu.be/QOgl1BauTog
Moving Average Part 4 of 4
Stock chart Analysis of Moving average trading method
http://youtu.be/EM6hQbedGNU
MT4 - How to Set Up a Moving Average
http://youtu.be/QiftMgvI1ZY
Strategy - Moving Averages - What type? period? what stops?
It's not about what moving average, it's all about the principle of using the moving averages.
http://youtu.be/1p7e_tKotw8
Moving Average Forecasting: What You Need to Know
How do you spot developing investment trends? "Moving Average Forecasting" articulates three key steps for risk-averse investors. As part of the Strategic Investor Spotlight Series, "Moving Average Forecasting" teaches you how to opportunistically identify important financial market trend signals.
http://youtu.be/0xpLdToNImA
Moving Average Strategy Forex Trading
Moving average is one of the most widely used Indicator because it is simple and easy to use.
This Indicator is a trend following indicator that is used by forex traders for three things:
- Identify the beginning of a new trend
- Measure the sustainability of the new trend
- Identify the end of a trend and signal a reversal
The MA is used to smooth out the volatility of price action. The MA is an overlay indicator and it is placed on top or superimposed on the price chart.
On the example below the blue line represents a 15 period MA, which acts to smooth out the volatility of the price action.
Attachment 2191
Trading Short-term and Long-term Price Period of Moving Average
A trader can choose to adjust the periods used to calculate the moving average.
If a trader uses short periods then the MA will react faster to the changes in price.
For example if a trader uses the 7 day MA then, it will react to price change much faster than a 14 day or 21 day MA would. However, using short time periods to calculate the MA might result in the indicator giving false signals (whipsaws).
Attachment 2192
If another trader uses longer time periods then the MA will react to price changes much slower.
For example, if a trader uses the 14 day MA then the average will be less prone to whipsaws but it will react much slower.
Attachment 2193
Attachment 2194
Types of Moving Averages SMA, EMA, LWMA and SMMA
There are 4 types of moving averages:
- Simple moving average
- Exponential moving average
- Smoothed moving average
- Linear weighted moving average
The difference between these 4 moving averages is the weight assigned in to the most recent price data.
Simple Moving Average - SMA
Simple moving averages apply equal weight to the prices used to calculate the average
Simple moving average is calculated by summing up the price periods of a financial instrument and this value is then divided by the number of such periods. For example simple moving average 10, adds price for the last 10 periods and divides them by 10.
Exponential Moving Average - EMA
Exponential moving averages apply more weight to the most recent price data.
Exponential moving averages are calculated by assigning the latest price values more weight based on a percent P, multiplier that is used to multiply and assign more weight to the latest price data.
Linear Weighted Moving Average - LWMA
Linear weighted moving averages apply more weight to the most recent price data.
Linear weighted moving average - the latest data is of more value than earlier data. Weighted moving average is calculated by multiplying each of the closing prices within the price series, by a certain weight coefficient.
Smoothed moving average - SMMA
The smoothed moving average is calculated by applying a smoothing factor of N, the smoothing factor is composed of N smoothing periods.
The example below shows SMA, EMA and LWMA. The smoothed moving average is not commonly used so it is not shown below.
The Linear weighted moving average reacts fastest to price data, followed by the exponential moving average and then the SMA.
Attachment 2196
Day Trading with Exponential moving averages and simple moving averages
The moving averages most commonly used are simple moving average (SMA) and more and exponential moving average (EMA). Whereas the EMA has a more sophisticated method of calculation, its more popular than the SMA moving average.
SMA is the arithmetic mean of the closing prices in the period based on the set time period where each time period the price is added and then it is divided by the number of time periods chosen. If 10 is the period used the price for the last ten periods added up then it is divided by 10.
SMA is the result of a simple arithmetic average. Very simple and some forex traders tend to associate with the forex trend since it closely follows price action.
EMA on the other hand uses an acceleration factor and it is more responsive to the trend.
The SMA is used in price charts to analyze price action relative to the SMA. If the price action in more than 3 or 4 time periods show below the SMA then its an indication that long trades should be closed immediately and the bullish momentum is waning.
The shorter the SMA Price action period the faster the SMA is to respond to price change. SMA can be used to show direct information regarding the trend of the market and the strength by looking at the slope of the SMA, the steeper or more pronounced slope display is, the stronger the forex trend.
The EMA is also used by many traders in the same way as the SMA but it reacts faster to price action and therefore preferred by some traders.
The SMA and EMA can also be used to generate entry and exit points. These Moving averages can also be combined with Fibonacci and ADX indicator to generate confirmation signals. Most day traders use 5- 10 period moving average.
Technical Analysis of Moving Average Forex Indicator
Forex Trend Identification
The moving average can be used as an indicator for generating Forex trading signals. A buy or sell Forex signal is generated when price either moves above or below the moving average, respectively.
If the MA is heading upward in diagonal manner then the general Forex market trend is upwards.
If the on the other hand the MA is heading downwards in diagonal manner then the general Forex market trend is downwards.
Upward Forex Trend/Bullish Trend
If the MA is moving up, then the trend is upwards and the signal generated is a buy/bullish signal.
As long as the price location is above the moving average then the Forex trend will remain as an upward trend. The moving average will act as a “support level” and price action of the chart candlesticks should not close below the MA.
Moving Average Buy Signal
When the price moves above the MA and closes above the moving average, a buy signal is generated.
Forex Traders, who want to confirm the trade signal before implementing it, should wait until the MA line turns and starts to move in an upward direction. It is always best to wait for the confirmation signal so as to reduce chances of a whipsaw.
Attachment 2197
Downward Forex Trend/Bearish Market
If the MA is moving down, then the Forex trend is downwards and the signal generated is a sell/short signal.
As long as the price location is below the MA then the trend will remain as a downward bearish Forex trend. The MA will act as a “resistance level” and price action of candlesticks should not close above the MA.
Moving Average Sell Signal
When the price moves below the MA and closes below the moving average, a sell signal is generated.
Traders who want to confirm the signal should wait until the MA line turns and starts to move in a downward direction. This will reduce the chance of trading a whipsaw.
Attachment 2198
Range Market signals
Range Market signals can also be identified using the MA. Range Market signals will be illustrated in the next lesson.
Moving average crossover method
Moving average crossover method is also another Forex trend generation method that is more favored by the Forex traders compared to the above signal generation method. It is also the simplest form of a Forex trading system widely used by traders. This MA crossover method is combined with other Forex technical indicators to form more complex Forex trading systems.
Moving Average Whipsaws in Range Market
The MA is a useful indicator to trade with when a trend has formed. However the indicator is prone to whipsaws when the price is trading in range market.
The MA is prone to whipsaws during a ranging market because the price is volatile and keeps moving around the average, causing the indicator to give signals indicating upward trend and then quickly changing to give sell signals.
It is for this reason that the MA should not be used to trade in a range based market.
Attachment 2199
Ranging Market & Whipsaws
This is why it is best to combine this indicator with other indicators when generating trading signals to trade currencies with.
Moving Average Crossover Method
The cross over method uses two moving averages to generate trading signals. The first MA is a shorter period MA and the second average is a longer period MA.
Attachment 2200
This method is referred to as the crossover method because signals are generated when the two averages cross each other.
Attachment 2201
A buy is generated when the shorter MA crosses above the longer MA.
Sell signal
A sell is generated when the shorter MA crosses below the longer MA.
Attachment 2201
Buy and Sell signal
The above system is the most simplest of all systems that traders use to trade currencies.
Moving Average Support and Resistance Levels
Moving Averages can be used as points of support and resistance.
When price reaches the moving average, the MA level can act as a point of support or resistance for the price.
Buy Signal
If price is on an up trend and starts to retrace, then most traders might wait to buy at a better price when the price hits a support level. Traders will sometimes use the MA to determine the support level.
A buy signal is generated when price hits the MA, turns and starts moving in the upward direction. The signal is confirmed when price closes above the MA. Because many traders use the moving averages to generate trading signals, price will normally react to these levels.
A stop loss should be set just below the MA. Ideally it should be set a few pips below the previous low.
Attachment 2202
Sell Signal
If price is on a down trend and starts to retrace, then most traders might wait to sell at a better price when the price hits a resistance level. Traders will sometimes use the MA to determine the resistance level.
A sell signal is generated when price hits the MA, turns and starts moving in the downward direction. The signal is confirmed when price closes below the MA. Because many traders use the moving averages to generate trading signals, price will normally react to these levels.
A stop loss should be set just above the MA. Ideally it should be set a few pips above the previous high.
Attachment 2203
Resistance turns support
When a resistance is broken it turns into support and vice versa.
This happens when the fundamentals of a currency change and consequently the direction of a currency pair. The direction change is reflected by the moving average, the direction is confirmed when the resistance turns into support or vice versa (when support turns into resistance)
Attachment 2204
How to choose a moving average to trade with
A trader can choose a moving average based on the time frame that he is trading; the trader might choose the moving average to measure minute chart, hourly charts, day charts or even weekly.
The trader can also choose to average the closing price, opening price or median price.
Moving average is commonly used devices to measure strength of trends. The data is precise and its output as a line can be customized to ones preferences.
Using the moving average is one of the basic ways to generate buy and sell signals which are used to trade in the direction of the trend, since the moving average is a lagging and a trend following indicator. The Moving average indicator as a lagging indicator means that it will tend to give late signals as opposed to leading indicators. However, the Moving average as a lagging indicator gives more accurate signals and is less prone to whipsaws compared to leading indicators.
Traders choose the moving average period to use depending on the type of trading they do; short-term, medium-term and long-term.
- Short-term: 10 -50 Period Moving Average
- Medium-term: 50 - 100 Period Moving Average
- Long-term: 100 - 200 Period Moving Average
The period in this case can be measured in minute chart, hourly charts, day charts or even weekly. For our example we will use 1 hour period.
Short term moving averages are sensitive to price action and can spot trends signals faster than the long term moving averages. line more closely than a long term (200 period) average. Shorter term moving averages are also more prone to whipsaws compared to long term ones.
Long term averages help avoid whipsaws, but are slower in spotting new trends and reversals.
Because long term moving averages calculate the average using more price data, it does not reverse as fast as a short term moving average and it is slow to catch the changes in the trend. However the longer term moving average is better when the trend stays in force for a longer time.
The work of a trader is to find a moving average that will identify trends as early as possible while at the same time avoiding fake-out signals (whipsaws).
Short-term Forex Trading with Moving Averages
Short term trading will use short period moving averages such as the 10 and 20 moving average.
In the example below we use 10 and 20 moving averages to generate Forex signals; the signals generated are able to identify the trend as early as possible.
Attachment 2206
Scalper Trading Using Moving Averages
One of the most widely used method of technical analysis used to trade price fluctuations in scalp trading is the use of moving averages. moving averages is an indicator that provides a profitable chart structure for scalp trader.
The idea behind moving averages is to simply enhance analysis before taking a signal to enter the market. Planning and setting goals in the short-term according to moving averages helps a trader to identify interests in the market and thus trade accordingly.
Most of the targets can be established using a specific period on MA. The moving averages determines whether the trader will scalp in a short-term long-term. In addition, the price action above or below the price determines the state of the market for the trading day.
If a large part of the price action is considered to be below the MA, then bias trade/forex trend for the day is short. Most traders the use the MA as support or resistance to determine where to enter a trade, if price touches the MA in the direction of the forex trend a trade is then opened.
The moving averages are plotted and the intersection point with the price action can be used to determine the appropriate entry and exit times in the market. Since there is always oscillation in the forex trends and activities of the price action on the market, the price will repeat this process of oscillating and bouncing off the MA and this can be used to generate forex trading signals.
Scalp trader use moving averages define the price floor in an upward Forex trend and price ceiling in a downward Forex trend.
Simple moving averages are calculated and their approach is based on the observation of price within a particular period of time using sufficient data to calculate the moving averages is what moving average are all about? The interpretation of the moving averages has provided many scalp traders with lots of tips on how and when to trade a currency.
Medium-term Trading with Moving Average
Medium term trading will use the 50 period MA.
The 50 period MA acts as support or resistance level for the price.
In an uptrend the 50 period MA will act as a support, price should always bounce back up after touching the MA. If price closes below the MA then it is an exit signal.
Attachment 2207
50 period MA Support
In a downtrend the 50 period MA will act as a resistance, price should always go down after touching the moving average. If price closes above the moving average then it is an exit signal.
Attachment 2208
50 Day Moving Average Analysis in the Forex Market
As your currency pair moves up in price, there is a key line you want to watch. This is the 50 day moving average. If your currency pair stays above it, that is a very good sign. If your currency pair drops below the line in heavy volume, watch out, there could be reversal ahead.
A 50 day MA line takes 10 weeks of closing price data, and then plots the average. The line is recalculated everyday. This will show a currency pair's price trend. It can be up, down, or sideways.
You normally should only buy currency pairs that are above their 50 day MA. This tells you the currency pair is trending upward in price. You always want to trade with the trend, and not against it. Many of the world's greatest traders, past and present, only trade or traded in the direction of the trend.
When a successful currency pair corrects in price, which is normal, it may drop down to its 50 day MA.
Winning currency pairs normally will find support over and over again at that line. Big trading institutions such as mutual funds, pension funds, and hedge funds watch top currency pairs very closely. When these big volume trading entities spot a great currency pair moving down to its 50 day line, they see it as an opportunity, to add to, or start a position at a reasonable price.
What does it mean if your currency pair price slices downward through its 50 day line. If it happens on heavy volume, it is a strong signal to sell the currency pair. This means big institutions are selling their shares, and that can cause a dramatic drop in price, even if fundamentals still look solid. Now, if your currency pair drops slightly below the 50 day line on light volume, watch how the currency pair acts in the following days, and take appropriate action if necessary
Long-term Trading with Moving Average
Long term trading will use long period moving averages such as the 100 and 200 moving average.
These moving averages act as long term support and resistance levels. Since many traders use the 100 and 200 moving averages price will often react to these support and resistance levels.
Attachment 2209
Learn about the 200 day MA
In Forex Trading, investors can use both fundamental analysis and technical analysis to help determine whether a currency pair is a good buy or sell.
In technical analysis technique traders looking to gauge supply and demand for a currency use the 200 day moving average to examine data in different ways.
Traders are most familiar with the basic analysis of MA. The 200 day moving average is used to plot the long term support or resistance level. If price is above 200 day MA then price is bullish, and if it is below then it is bearish.
One of the ways to measure supply and demand is to calculate the average closing price over the last 200 trading sessions. this accounts for each day going back in time and shows how this 200 day average has moved hence the term 200 day MA.
The reason why the average 200 day MA in particular is so popular in technical analysis is because historically has been used with profitable results for trading in the forex market. A popular timing strategy is used to buy when price action is above its moving average of 200 days and sell when it goes below it.
With individual currency pairs, investors can benefit from being notified when a currency pair rises above, or falls below its 200 day Moving Average and then use fundamental analysis to help determine if the signal is an opportunity to go long or short.
20 Pips Price Range Moving Average Forex Strategy
The 20 pips price range moving average strategy is used with the 1 Hour and 15 minute Trading charts. On this chart time-frames we use the 100 and 200 simple moving average indicator.
Both the 1 Hour and 15 minute chart time-frames will use the 100 and 200 SMA (SMA Indicator) to determine the direction of the Forex trend.
The 1 Hour chart time-frame checks the long term direction of the Forex trend, upward or downward trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute price chart to find the optimal point to enter trades. Trades are opened only when the price is within 20 pips range of the 200 simple MA, if price is not within this pip range trades are not opened.
Buy Signal - Forex Uptrend/Bullish Market
To generate Forex buy (bullish signals) using the 20 pips moving average Forex trading strategy, we shall use the 1hour and 15 minute chart time-frame.
On the 1 hour Forex chart time-frame the price of the currency pair should be above both the 100 and 200 simple moving average. We then move to a lower chart time-frame, the 15 minute chart time-frame to generate a trade signal.
On 15 minute chart time-frame, when price reaches the 20 pips range above the 200 SMA, we open a buy trade and place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Forex volatility its best to use 30 pips stop loss.
A buy trade can also be opened when price touches the 100 Simple moving average, provided it’s not very far from the 200 SMA. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.
Attachment 2210
Sell Signal – Forex Downtrend/Bearish Market
To generate Forex sell (short signals) using the 20 pips moving average Forex trading strategy, we shall also use the 1hour and 15 minute chart time-frame.
On the 1 hour chart time-frame, the price should be below both the 100 and 200 simple moving average. We then move to the 15 minute chart time-frame to generate a Trading Signal.
On 15 minute chart, when price reaches the 20 pips range below the 200 SMA, we open a sell trade and place a stop loss 30 pips above the 200 simple moving average.
Attachment 2211
With this method price will generally bounce of these levels because many traders watch these levels, and open similar trades at around the same point.
These levels act as short term resistance or support levels within the currency price charts.
Profit Taking level For This Trading Strategy
With this trading strategy the price will bounce and make a move in the direction of the original Forex trend. This move will range from 70 - 100 pips.
The best profit taking level would therefore be considered to be 80 pips from the 200 simple moving average.
A Winning Strategy Using Moving Average & Average True Range
Moving Average & Average True Range - A Winning Strategy :
In any trading, whether you trade Stocks, Future or Forex, the first key of success is having a good Strategy, which provides good result. Second most important key is Discipline and third key is Money Management.
In this article, we will discuss about a strategy based on Moving Average and ATR, which gives me 50 – 100 PIPS per trading day in just 2 Hours. So let us come to point.
We need few things on our chart before we explain the strategy:
1. Time Frame: Minimum 15 minutes and above.
2. Moving Averages: 14 SMA Low Price (Yellow),
14 SMA High Price (Blue).
[SMA - Simple Moving Average]
3. Average True Range: Period 14
4. Support and Resistance
Now look at below Charts:
Attachment 2326
Short Position Illustration
Attachment 23272: Long Position Illustration
Trade Setup:
First look at ATR. Is it greater than 0.0013? Yes. Great! When Candle close above Blue moving average, at the opening of next candle we will buy and when candle close below Yellow moving average, at the opening of next candle we will sell. Is not it simple?
This can be applied on any currency pair, and mostly I trade it with USD pairs, i.e. EURUSD, GBPUSD, & AUDUSD.
Here it is :
We will use ATR value to set our take-profit and stop-loss level.
Stop Loss level:
(ATR Value*1.5 + Trade open price) + 10 PIPS
Take Profit Level:
(ATR Value*3 + Trade open price)
Manual exit of trade :
- For Buy Entry : If Candle closes below yellow moving average.
- For Sell Entry : If candle closes above blue moving average.
Look for a trend on longer time frame, and find Support and Resistance. If you get any signal near to Support and Resistance level, never enter into the trade. There is a good proverb for trading is : "Trend is your friend."
# Important points to remember :
1. Avoid News release time
2. Don't trade without Stop-Loss and Take-Profit
Target
3. Keep Learning
The winner and looser in a trading is "how do you control your profits?" The typical trader watch out a trade every moment and most of times, they make wrong decision and in a winning trade, close the trade only with few PIPs gain, and wait for market to turn-back, when they are in loosing position. Therefore, you do not need to watch out a trade, whether you are a newbie or experienced trader. If you have done your analysis, then trust your analysis.
Moving Average Forecasting: What You Need to Know
How do you spot developing investment trends? "Moving Average Forecasting" articulates three key steps for risk-averse investors. As part of the Strategic Investor Spotlight Series, "Moving Average Forecasting" teaches you how to opportunistically identify important financial market trend signals.
http://youtu.be/0xpLdToNImA
Time Series- moving averages
Maths Doctor provide one-to-one live online tutoring.
http://youtu.be/oR5kbfDO10A
Forex Trading Strategy - Day Trading Moving Averages
This is about 200 period MA
http://youtu.be/DF2jCehVFT0
Moving Average and MACD Combo Strategy from BK Forex
http://youtu.be/IOKNOZhz4N8
How to Trade Moving Averages Like a Pro
As moving averages are lagging indicators they tend to work well in identifying and following a trend and not to work well in ranging or trend less markets. Because of this traders will often use them to trade with the trend as well as to identify potential areas of support or resistance which may result in a continuation or reversal of a trend.
The most basic way that traders will use moving averages is to identify and then trade with the trend of a particular instrument. Although most traders will probably want to use the moving average in conjunction with some of the things that we have learned so far and some of the things we will learn in future lessons, the most basic way to trade using just the moving average is to buy when the price of a financial instrument breaks above the moving average line and sell when the financial instrument breaks below the moving average line. For confirmation traders will often wait for a full bar to close above the moving average line before entering long and a full bar to close below the moving average line before entering a short position.
A second way that traders use moving averages is to identify areas of support or resistance and then trade the break of these levels, looking for a potential reversal of the trend. When a financial instrument has shown a particular moving average level to be significant from a support or resistance standpoint in the past by testing the moving average line several times, and then breaks that level, traders will often see this as a warning sign that the trend is reversing and position themselves according
The last way that traders will using moving averages is by plotting a longer term moving average and a shorter term moving average on a chart and trading the cross over. The idea here is that the shorter term moving average will be faster in identifying changes in the trend and therefore traders will look to get long when the shorter term moving average crosses above the longer term moving average and short when the shorter term moving average crosses below the longer term moving average.
http://youtu.be/25WiPIndXtA
Moving Average Shift, What It Is And How It Works
15 Ways To Manage Opportunity Through Moving Averages
1. The 20-day moving average commonly marks the short-term trend, the 50-day moving average the intermediate trend, and the 200-day moving average the long-term trend of the market.
2. These three settings represent natural boundaries for price pullbacks. Two forces empower those averages: First, they define levels where profit- and loss-taking should ebb following strong price movement. Second, their common recognition draws a crowd that perpetrates a self-fulfilling event whenever price approaches.
3. Moving averages generate false signals during range-bound markets because they're trend-following indicators that measure upward or downward momentum. They lose their power in any environment that shows a slow rate of price change.
4. The characteristic of moving averages changes as they flatten and roll over. The turn of an average toward horizontal signifies a loss of momentum for that time frame. This increases the odds that price will cross the average with relative ease. When a set of averages flatline and draw close to one another, price often swivels back and forth across the axis in a noisy pattern.
5. Moving averages emit continuous signals because they're plotted right on top of price. Their relative correlation with price development changes with each bar. They also exhibit active convergence-divergence relationships with all other forms of support and resistance.
6. Use exponential moving averages, or EMAs, for longer time frames but shift down to simple moving averages, or SMAs, for shorter ones. EMAs apply more weight to recent price change, while SMAs view each data point equally.
7. Short-term SMAs let traders spy on other market participants. The public uses simple moving average settings because they don't understand EMAs. Good intraday signals rely more on how the competition thinks than the technicals of the moment.
8. Place five-, eight- and 13-bar SMAs on intraday charts to measure short-term trend strength. In strong moves, the averages will line up and point in the same direction. But they flip over one at a time at highs and lows, until price finally surges through in the other direction.
9. Price location in relation to the 200-day moving average determines long-term investor psychology. Bulls live above the 200-day moving average, while bears live below it. Sellers eat up rallies below this line in the sand, while buyers come to the rescue above it.
10. When the 50-day moving average pierces the 200-day moving average in either direction, it predicts a substantial shift in buying and selling behavior. The 50-day moving average rising above the 200-day moving average is called a Golden Cross, while the bearish piercing is called a Death Cross.
11. It's harder for price to break above a declining moving average than a rising moving average. Conversely, it's harder for price to drop through a rising moving average than a declining moving average.
12. Moving averages set to different time frames reveal trend velocity through their relationships with each other. Measure this with a classic Moving Average-Convergence-Divergence (MACD) indicator, or apply multiple averages to your charts and watch how they spread or contract over different time.
13. Place a 60-day volume moving average across green and red volume histograms in the lower chart pane to identify when specific sessions draw unexpected interest. The slope of the average also identifies hidden buying and selling pressure.
14. Don't use long-term moving averages to make short-term predictions because they force important data to lag current events. A trend may already be mature and nearing its end by the time a specific moving average issues a buy or sell signal.
15. Support and resistance mechanics develop between moving averages as they flip and roll. Look for one average to bounce on the other average, rather than break through it immediately. After a crossover finally takes place, that level becomes support or resistance for future price movement.
http://youtu.be/dk1htfJ5Nws
The Right Way to Trade Overbought/Oversold Oscillators -- With the Trend
The basic points discussed in the video are as follows:
1. Only go short if price is below the 50 simple moving average
2. Only buy if price is above the 50 simple moving average
3. If price is above the 50 SMA and the oscillator reaches an overbought level, wait for a pullback. If price rallies and goes back to where it was when the oscillator flashed the overbought signal, then buy
4. The same principle can be applied with oversold levels and shorting when price is below the 50 SMA
Attachment 2778
http://youtu.be/Agm2LtTRfcE
Al Brooks' Moving Average Gap Bar Strategy
The basic elements of the strategy are as follows:
1. Identify a market that is in a bear trend on the 5 minute chart
2. Wait for a retracement in which the low of latest candle is above the 20 EMA
3. Go short, targeting the low of the day.
To be clear, Brooks' approach to price action trading is much more thorough; this strategy is just one tool in his arsenal.
http://youtu.be/a2yCIzM5qfE
Interview With Al Brooks, Price Action Day Trader
Attachment 2898
Here is a summary of some of the key points:
1. Brooks is a price action trader with 27+ years of experience.
2. He is an active day trader, trading off the 5 minute chart. He trades the entire day.
3. He has a purely technical approach, relying totally on price action with just a few moving averages.
4. His approach is entirely rules-based; he not use any discretion and does not consider relying on intuition.
5. He states his setups have worked for decades and continue to work.
Brooks' analysis relies on measuring movements (i.e. retracements), gauging the strength of trends, and analyzing candlesticks.
Brooks has authored a number of books on trading. Interested traders may find it worthwhile to check out his page on Amazon.
http://youtu.be/IcJ440K1Fj0
Technical Analysis of Trading Indicators - Moving averages
Simple moving averages can be a powerful tool in your trading
http://youtu.be/_6sxs9N2NRE
How To trade forex using moving average
http://youtu.be/roaPGl3x-a4
Magic Moving Average?
An introduction to Moving Averages and the quest for the perfect Moving Average.
http://youtu.be/Z0Me9jkmWLg
How To Trade Moving Averages
http://youtu.be/mM21pVf2IhU
Forex Trading Types Of Moving Averages
http://youtu.be/jwiOz1YbBOQ
Trading with Moving Averages
This video gives insights and tips for how to trade with moving averages on a short or longer term basis.
http://youtu.be/Wz2MWN4IGis
Talking Points
- The 200-day simple moving average is one of the most widely watched technical indicators
- This moving average can be indentify a significant area of support in an uptrend
- The confluence of the 200-day simple moving average and a major price support zone provides a low risk trading opportunity to join an uptrend
Forex traders have an overwhelming selection of indicators to choose from to help them locate a trading opportunity. Some of these brand new indicators are costly and promise to be the “Holy Grail”. Others are free and not so new but have withstood the test of time. One such indicator is the 200-day simple moving average (SMA).
Since there are roughly 200 trading days in a year, a currency that is trading above its average 200 SMA is considered bullish. It can also be simply used to find major support so traders can enter an uptrend with an excellent risk to reward ratio.
Learn Forex: NZDUSD 200-Day Simple Moving Average Bounce
http://media.dailyfx.com/illustratio..._Picture_1.png
In the example above, we can see a strong uptrend in the daily NZDUSD chart. The trend started at the end of August at 0.7718 from below the 200-day simple moving average crossed above the 200-SMA on 9/16 and reached a high of 0.8434 on 9/19. Traders who missed the over 700 pip move had a second chance to join this powerful trend as NZDUSD retraced back and bounced from the blue 200-day simple moving average in the 0.8200 neighborhood.
In Forex, numbers ending in “00” usually act as significant areas of support and resistance as well. The confluence of these two factors gave traders added confidence in a resumption of the trend. From the rebound on 10/2, NZDUSD did not disappoint as the bulls as price pushed up over 300 pips higher topping out at 0.8543 on 10/22.
However, nothing moves in a straight line forever including NZDUSD. But after a 300 pip decline, NZDUSD has just rebounded from its 200-day simple moving average (0.8177) and prior round number support at 0.8200. This setup could be a replay of the 10/2 rally and the 200-day simple moving average is about 80 pips away with the old 9/19 high at 0.8434 is 182 pips away.
In sum, the confluence of an uptrend line, round number support and our old friend, the 200-day simple moving average point give traders a good 1:2 risk to reward setup. Traits of Successful Traders research by FXCM of over 12 million real trades by clients worldwide in 2009 and 2010 revealed that the number one mistake that traders made was not using a minimum of a 1:2 risk/reward ratio.
Locating where price is in relation to the 200-day simple moving average can help Forex traders find entries that have a greater chance of making more money than the amount placed at risk.
--- Written by Gregory McLeod, Trading Instructor
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