I’m going to start a 5 part series on the main indicators that I like to use after I have found a great swing opportunity!
Ima jump right into it. This section will be all about Moving averages
I use 7 different simple moving averages set to the close;
You may use Exponential moving averages for your charts but I prefer Simple, it is entirely up to you. The main difference between these two is that exponential moving averages (EMAs) put more emphasis on the latest most current price movements, simple moving averages are just that… Simple. Yhey take the weight of the pre set period price data to form the average price. These moving averages can be used in a variety of ways, some can be used as signals, others use it to verify a trend.They can also be used as profit taking points and entry points. But actually the right answer. Dun… dun… dun… all of the above! when you put these moving averages on your own chart you’ll notice that much too often price like to hand rail them, at other points where price breaks through one moving average the next one down will often act as the next support zone. When trading with a verified trend they act as great entries and exits as you’ll notice that during a strong uptrend price like to bounce off of it and rarely break through. One of my favorite entry signals is when price breaks through the 20,0r 50 moving averages then the next candle closes back on to of the moving average near a support point. This is a very bullish pattern. However, this is the just one of my indicators, and it must be used in conjunction with the others to make a well thought trade. Pictured below is a chart on XAU/USD (FX) and as you can see I have color coded my moving averages, I highly recommend this as it will make your chart neater and more comprehensive. please shoot me an email at firstname.lastname@example.org for any questions about the moving averages or to learn how to throw poop at humans an impress the lady ape in your life! *beats chest*