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?
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.
There are several interesting articles about MAs in trading here: https://forextester.com/blog/main
Some of the articles could be quite difficult for newbie traders, but they are useful anyway.
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?
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
