how to apply moving averages

Tourist

Newbie
4 0
Hi All,
Could somebody inform how to apply my MA to my chart?
I use ETX Capital trading platform and it gives you the option of applying MA at the open, close, high or low.
Which would be the best to apply it to?

Thanks
 

tomorton

Legendary member
7,441 1,005
MA's are almost always applied to the close. If you see an MA and it doesn't say which figure it is calculated from, it will be the close.
 

Dowser

Experienced member
1,293 293
As Tom states; MA's are almost always applied to the close. But, if you don't want the MA's value to change while the current candle is forming set it to 'Open'. The downside to this, though, is that it increases the lag of the signal.
 

Tourist

Newbie
4 0
Thank you all, i appreciate the feedback.
 

hatemypips

Well-known member
496 36
Hi All,
Could somebody inform how to apply my MA to my chart?
I use ETX Capital trading platform and it gives you the option of applying MA at the open, close, high or low.
Which would be the best to apply it to?

Thanks
The underlying idea under moving average that price deviating heavily can converge in time to the moving average line. Or that many algos in the market using MA as a support levels (check S&P 500 fall in February, price bounced exactly from 200-day DMA). But well before using MA as a basis for trade get enough statistical proof that price tends to converge back to MA, because sometimes it doesn't
 

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