- How to Use Moving Averages as Support & Resistance Levels
- Trading Currency Futures With Momentum Indicators
There are also times when price will blast past it altogether. What some forex traders do is that they pop on two moving averages, and only buy or sell once price is in the middle of the space between the two moving averages.
How to Use Moving Averages as Support & Resistance Levels
Part of the appeal of the SMA is the ease with which it can be calculated. As discussed above, this was of major significance in the pre-computer era. One only has to sum the closes and divide by the number of bars in the data series (or remove the oldest data point from the previous sum, add the most recent and then divide).
Trading Currency Futures With Momentum Indicators
Whatever momentum indicator you like to use, whatever is your favorite. I’ve done lessons on RSI, and MFI and all kinds of things like that, even the momentum indicator. But you definitely want to make sure there is a momentum shift here. So, that this move down here is a weakness and where our momentum is shifting back into a bullish territory.
We have made own simple research that was aimed to find out how long on average traders plan to demo trade Forex before going live.
Measuring overbought and oversold conditions is tricky. Securities can become overbought and remain overbought in a strong uptrend. Similarly, securities can become oversold and remain oversold in a strong downtrend. In a strong uptrend, prices often move above the upper envelope and continue above this line. In fact, the upper envelope will rise as price continues above the upper envelope. This may seem technically overbought, but it is a sign of strength to remain overbought. The reverse is true for oversold. Overbought and oversold readings are best used when the trend flattens.
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The advance decline index symbol on my chart may not be the symbol that is used for your data provider. I am using Kinetic data here, so that’s the symbol for Kinetic data. And then I’ve got a 75 period simple moving average and I’ve got 7 minute charts as you can see.
Starting from video_89 , the introduction, I am trading the stock GCI live using a simulated account with a YouTube video update every weekend. If you want to follow-up the trades live, use the RSS feed at the top right side of this page.
The dual exponential moving average sounds complicated, but it 8767 s just another way of using two EMA 8767 s of different length together at the same time. One EMA measures the intermediate trend and the other EMA measures the short term trend. When the short term trend crosses above the longer term trend, it signals that the short term direction of the market and the intermediate direction of the market are moving in the same direction, this provides a long entry opportunity.
I noticed you look at MACD line to identify divergence.
I learned earlier that traders also look at MACD histogram to trade divergence.
Could you please explain the difference. thank you.