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Moving Average

 

Expert opinion: Moving averages are one of the most popular instruments of mathematical analysis. Not only can they help you identify a trend, but they also generate independent trading signals. Let's take a look at the following example for more detail:
- the intersection by the chart of the price of the moving average
- the intersection of two averages with different time periods
- using averages with large time periods as levels of support and resistanceles28_1_2019.png

Expert opinion: When choosing parameters for moving averages, stick to natural time cycles. For hourly charts (six hours, 12 hours, 24 hours). For daily charts (five weeks, 20 months, 60 quarters). Keep in mind that the smaller the time period of the average, the more frequently it will generate trading signals, but the less reliable they will be. The longer the time period of the average, the more reliable the signals will be, but but they will be a little late and will appear less frequently.

Expert opinion: Start from trend indicators when building your strategy. Their signals are simple and unambiguous. This will allow you to more quickly formulate a systematic approach to trading.