Trading Moving Averages
So we know what a moving average is pretty well by now, a line drawn by smoothing out price data over a set period of time is a moving average. Smoothing out helps to reduce the spike fluctuations that occur from one candlestick to another so that the line produced can easily be used to identify emerging trends, which is why we see support and resistances so clearly on it.
Using a bit of price action and the moving averages we can create signal to buy and sell, this video explores the types of moving averages first, the EMA, MA and WMA. The lesson after that touches up on trading psychology.
Finally, we move on to the final and most interesting lesson. Trading the crossover signal. In this lesson we will introduce to you a trading method based on crossover of moving averages with entry points near support/resistance area. As we have seen in our previous lesson how trading success depends only 5% on a trading strategy and 95% on discipline/attitude of a trader.
TradeAcademy is the education arm of RKSV, free financial education.