Hi all,
Still using a practice account until I feel comfortable. I understand how moving averages work, but I've tried a few different set ups and I cannot seem to get much value out of them.
How does everyone else find them?
Thank you
Hi, I use them to know where price is in relation to one
for example, if I look at a weekly chart I want to know where price is in relation to a 30 week average. If I'm trading above, im generally more bullish, trading below, more bearish. Its of course general, I use other criteria such as a break of a high/low however with regard to averages, hopefully that helps?
I only use one average on a chart and its always the simple moving average, and the setting applies to that time frame (eg 30 for weekly). Its very simple and very effective. Yes an MA will lag, but then so does price.
As soon as price is printed on a chart its history, an average is simply more history its how you use that information afterwards that determines its value and on the degree of history that's important to you.
what happened 5 minutes ago, or 1 day ago, or 1 week ago tells me nothing. what happens over a period of 5 minutes, a period of days etc will tell me much more in which case an average can be very useful and saves me an incredible amount of time