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Moving Averages

How to import Quandl data into TradingViewQuandl is a data library with all sorts of useful macroeconomic data. Unfortunately a lot of it you have to pay for, but there are also many data series you can access for free, including the "Blockchain" library with lots of useful data such as Bitcoin transaction fees. To access Quandl data, go to quandl.com. In the left-hand column, check the "Free" box to ensure your search results include only free data sets. Then type what you're looking for in the text box (e.g. "US wages" or "Bitcoin transaction cost"). Click the name of a data set in the search results. You should now see a chart. On the right hand side of the chart, click the "TradingView" button to import to TradingView. For an example of how to use this data, watch the video or check out my previous idea on Bitcoin transaction fees as a predictor of Bitcoin's price:
CEducation
by ChristopherCarrollSmith
42
Bollinger Bands - Contraception for your Price ActionSo i thought i’d do another educational post, this time on the Bollinger Bands. I’ll try and keep this as a brief introduction to the basics of Bollinger Bands so you can do your own research to fully understand what the indicator is doing and showing, there is no point putting a fancy indicator on your chart if you have no idea what it is showing you. Bollinger Bands measure, Price & Volatility, potential Support and Resistance, & it can also give you a sense of if an asset is Overbought or Oversold, although its best practice to use another indicator to get confirmation of being Oversold or Overbought because the price can walk the Upper and Lower Bands for extended Periods. The Standard Bollinger Bands is composed of a 20-period Simple Moving Average (SMA) which is its Middle Band, it also has an Upper Band & a Lower Band which envelopes the SMA. The outer bands are a +/- 2 Standard Deviation (StdDev) of the 20-period SMA in whatever timeframe you are in. A Simple Moving Average (SMA) is an unweighted average of the Previous 20-period Values in whatever timeframe you are in, so for the 1min chart, the SMA period will be an unweighted average of the previous 20 mins, for the 1hr chart, the SMA period will be an unweighted average of the previous 20 hours, for the Daily chart, the SMA period will be an unweighted average of the Previous 20 days and so on and so on. You are able to change the SMA to any period you want, some trading sites also allow you to change the SMA into an Exponential Moving Average (EMA). Changing the timeframe from the standard 20-period SMA to a faster SMA like a 10-period, will allow faster entry into possible buy & sell points but could be prone to false signals, because of this, most people keep the SMA at the Default of 20-periods to avoid possible false buy/sell signals. You can change the StdDev settings, but you must know what you are doing as you cannot just add any number for shits and giggles, for example, a 20-period SMA is 2 StdDev, a 10-period SMA is 1.5 StdDev and a 50-period SMA is 2.5 StdDev as default. For those interested, & from my understanding of it, the Population Standard Deviation used in the Bollinger Bands system is a measure of the +/- dispersion/variation of the mean or the sum of a collection of values, the values being the 20 periods, so a +/- deviation value away from its Midpoint Basis in whatever timeframe you are in. I won’t go into the calculations because everyone will stop reading & it’ll also hurt my head because i cannot even count. So the + is the Upper Band and the - is the Lower Band. So looking at the Bollinger Bands, we now know that the Middle Band is the basis & the Upper and Lower Bands are +/- Standard Deviations of that Middle Band Basis in whatever timeframe you are in. With Low Volatility, the closer the Upper and Lower Bands are to its Price & Middle Band Basis. The more volatile the Price action is in either direction, the further away the Price will move from its Middle Band and move closer to its Upper or Lower Bands depending on if it’s Bullish or Bearish. Along with the Price, the Upper and Lower Bands will also expand outwards and move away from its Middle Band. With extreme volatility the Price may even wick out or close a candle out of its Upper or Lower Bands. If there has been a period of Volatility which has come to an end, then you will see the Upper and Lower Bands start to contract inwards. You can use the Middle Band as potential Support and Resistance Levels depending on if the Price is above or below it. You can also use the Upper and Lower Bands as potential Resistance Levels, and also as potential entry levels for longs or shorts respectively. The Lower and Upper bands will point outwards and inwards depending on if the Price is contracting or expanding respectively. With normal volatility, if you use the default 20-period SMA & 2 StdDev settings, then the price action will possibly remain within the bands for roughly about 90% of the time. The Price will eventually move back in to the Upper or Lower Bands if there has been a period that the Price has been outside of the Upper or Lower Bands. What is great about the Bollinger Bands is that you can apply it to any chart and timeframe that has enough previous trading data, and use it to get a feel for the assets volatility over time. A key thing to look out for is the Bollinger Bands Squeeze, this happens when you buy latex contraception that’s too tigh……… sorry…… this happens when volatility has slowed & the Upper and Lower Bands contract, envelope and stay close to the Price & Middle Band so essentially Price action is trading sideways within a channel made up of the Lower and Upper Bands. The Bollinger Bands Squeeze Pattern can potentially end in a big breakout upwards or downwards. Bollinger Bands can also be used to see Bullish W-Bottoms or Bearish M-Top signals in the Price. These signals have 4 steps that need to happen for it to be considered valid but i’ll let you do your own research on that. The Price can also walk along the Upper and Lower Bands for an extended period of time depending on if the Price is Bullish or Bearish. It’s best practice to use complementary indicators like Volume, RSI, ADX, STOCH or MACD to try and get confirmation or any potential breakout. I actually use the Bollinger Bands on my charts in conjunction with the Ichimoku Cloud. On a side note, having a grasp of the basics of the original Bollinger Bands crated by John Bollinger is the first step to really understanding it and properly using it to enable you to make wise decisions with your money/investments. If you have an understand of the original Bollinger Bands, then that can help you with understanding other price enveloping indicators like what David ‘WycoffMode’ Ward has created. David has created his own genius take on the Bollinger Bands called Bad Ass Bollinger Bands, which is quite fascinating because it shows multiple +/- Standard Deviations for whatever timeframe you are in. You could potentially use these as multiple Support and Resistance Levels for whatever timeframe you are in and also look for any potential cascading effect from lower to higher timeframes using these multiple +/- StdDev levels, he does state however that to get the best out of it, you have to use it with his Phoenix Ascending indictor, which from what I’ve seen, i think it complements his Bad Ass Bollinger Bands by showing Momentum, Upwards and Downwards Pressure & potential Trend Crossover, this agrees with what i have said above, about using other complimentary indicators with your Bollinger Bands like RSI or MACD. From what I have seen of David’s Bad Ass Bollinger Bands, one of the many benefits of having multiple +/- Standard Deviations, 8 in total, 4+ & 4-, is that you end up with a closer to 95-99% of the Price action staying within the Bollinger Bands for more accuracy. 99% because if there is extreme volatility, that may still cause a Candle Wick to poke its head out. This new indicator is potentially a real game changer. This is just my opinion from what i have seen of it, so i could be completely wrong & David could say it doesn’t mean anything that i've typed and he’s gonna hunt me down for typing complete bollox. Below is a pic to show you the differences between the original Bollinger Bands and the Bad Ass Bollinger Bands. In any case, it’s best practice that when using your charts, you should have a range of indicators to complement each other, an indicator for Momentum, Volatility, Trend, Price, Volume ect. You do not need to add 4 indicators on your chart that show the same thing. If your using RSI then you don’t really need the STOCH, If you’re using MACD then you don’t really need ADX or Parabolic SAR. If you’re interested in learning more about the Ichimoku Cloud System, please click on the below pic which will take you to an educational post i did about it. I hope you have found this brief intro helpful & i hope it encourages you to do your own research to find the best trading strategy for you. Cheers 👍
BINANCE:ADAUSDEducation
by TradingThroughTheLens
6
EURUSD 1D MEAN REVERSION TRADING STRATEGYBest Mean Reversion Strategy: Before we get to that point, first and foremost, let’s see what tools we need to use for this strategy. The best mean reversion indicator that works 85% of the time is the RSI indicator. So, you will need the RSI oscillator on your charts. Now, there is one more important thing that needs to be done. The RSI settings must be changed from the default 14-period to 2-period RSI. So, we’re having not just any type of RSI, but a very fast RSI. Levels are 10 & 90. The other technical indicators we’re going to deploy on the charts are: 10-period simple moving average. 200-period moving average. Note* Another thing to keep in mind is the recommended time frame is the daily chart. Intraday charts won’t work because the fast-period RSI will generate a lot of false signals on lower time frames. Now, let’s see how we can combine the 3 indicators into a profitable mean reversion strategy. The first obvious question is when to buy and sell currency. To answer this question the mean reversion trading strategy needs to satisfy 3 triggers: The price needs to be above the 200-day EMA. This means that the overall price is in an uptrend so, we’re only going to look for buy signals in bull markets. Second, we look for the price to below the 10-day SMA, which shows a deviation from its mean. Last but not least, we look at the RSI to overshoot below 10, which signals that we’re in oversold territory. Note* For sell signals use the same trading rules but in reverse. Once all 3 conditions are satisfied we enter a trade at the open of the following day. Once we’re in a trade we also need, we also need to know when to exit the market. This is where the 10-period simple moving average comes into play again. What we’re looking for is for the price to reverse back to the 10-period SMA strategy. More often than not the price will overshoot to the upside and break above the 10-period SMA. So, to fully capitalize on the entire move we use multiple take profit targets: The first profit target is to cash half of the position once we touch the 10-period SMA. The second portion of your position is left until we break and close above the 10-period SMA. Based on our backtesting result, on average your trades should reach the second target within 1-3 days. The longer you keep your position open, the lower the chances of the trade to succeed. As a general rule, you should cash out of your entire position within the first 3 trading days. Now, we have left out for last the most important part, which is managing risk. When it comes to the protective stop loss we’re advising not to place a stop loss right away, but instead, use a time stop. Let me explain… Based on our backtesting results we have found that a lot of the times the market will do a false breakout below the previous day low (high) and hurt our position. So, to avoid this scenario we have found a great trick to move around it. Our rule is very simple: If by the first half of the day our position shows a loss, we close that trade and call it a day. This is a risky play but we have the edge on our side to play this kind of trick. After all, trading is a risky game and everyone needs to decide for themselves how to manage risk. Final Words – Best Mean Reversion Strategy In summary, the most alluring thing about mean reversion trading is the high win-loss ratio and the simplicity behind it. One thing to keep in mind is that the mean reversion strategy tends to perform poorly when the market is in a hard-mode trend. But that shouldn’t be much of a big deal since the market is ranging 75% of the time. The key takeaways from the mean reversion trading strategy are as follow: Mean reversion can be used with all asset classes (stocks, commodities, currencies or cryptocurrencies). Range trading and overbought/oversold signals work the best with this method. Adjust the RSI settings to a fast-period. You can generate quick profits – short holding time periods. A trading tip – use a time stop instead of a price stop. Thank you for reading! Mean Reversion Trading Strategy with a Sneaky Secret. In this guide, you’ll learn a mean reversion trading strategy with some trading secrets that will assist you to limit the downside. The first part of the guide will highlight what is mean reversion trading, while in the second part we’ll reveal the mean reversion strategy and how you can fine-tune it to fit your personality. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. Make sure you hit the subscribe button, so you get your Free Trading Strategy every week directly into your email box. The mean reversion trading systems are more appealing to a lot of traders because it tends to have a higher win rate as opposed to the trend following strategies. Even when the markets are in well-established trends, mean reversion happens quite often. So, there are more opportunities to profit from mean reversion trading. Let’s kick the ball rolling and start with the basic by first explaining what is mean reversion in trading and then we’re going to reveal 5 trading principles that can be used with the mean reversion strategy. Table of Contents 1 What is Mean Reversion Trading? 2 How Mean Reversion Trading Works? 3 Why the Mean Reversion Strategy Works? 4 Mean Reversion Trading Strategy 5 Final Words – Best Mean Reversion Strategy What is Mean Reversion Trading? Put it simply; mean reversion trading assumes that over time the prices of any asset (stock, commodity, FX currency or cryptocurrency) in time will revert back to the mean or average price. In other words, reversion to the mean trading comes down to the old saying: “What goes up must come down.” The mean reversion theory is at the foundation of many trading strategies that involve buying and selling of those asset class prices that have deviated from their historical averages. The idea is that in the long-term prices will return back to their previous average prices and normal pattern. Example of mean reversion trading strategies includes: Reversals. Pullback trading. Retracement. Range trading system. Overbought and oversold strategies. Our best mean reversion strategy is to trade those price ranges that occur after a severe price markup or markdown. In this case, reversion to the mean implies trading around the middle of the range as our average price. In essence, mean reversion is playing around a central value be it the middle of the range, or a moving average, or however you wish to express it. The reversion to mean trading system tends to produce a higher win rate in those instances where we can notice extreme changes in the price. We can measure extreme price changes relative to the time frame used. Obviously, there is also a probability that the price will not revert back to its mean. This can indicate that there is a real shift in the market sentiment and we’re in a new paradigm. Now that we know what is mean reversion trading, let’s see how the mean reversion regression works. How Mean Reversion Trading Works? With mean reversion, we’re looking to trade against the heard. A lot of the times when you’re doing mean reversion trading, you’ll be quick in-and-out of a trade. That’s why day trading mean reversion strategy works better. There are other different ways to trade with the mean reversion strategy, including: Price stretch from a simple moving average strategy. A break outside the Bollinger Bands strategy and a return back to the mean. A test of support and resistance strategy while the price is consolidating. The linear regression is clearly slopping upwards and it’s acting as a magnet to the price. Each time the price deviates from the average price line it snaps back to it outlining the reversion to the mean concept. The main advantages of the mean reversion strategy include: Effective exit strategy – the take profit target is always the average price. High win rate – the shorter the mean reversion time frame used the higher the win rate. Good risk-adjusted returns. All trading strategies have their own pros and cons. The biggest flaw is that once you’re in a trade you’ll often see first a loss before you see a profit. The main components of the mean reversion strategy should include: 1. Entry signal after the price has moved away from its average price. You can simply calculate how far away percentage-wise are from the mean or use an ATR strategy multiple declines or simply use a volume oscillator to gauge oversold/overbought readings. 2. Exit signal gives you a way out once you get into a trade. 3. Broad market timing. Why the Mean Reversion Strategy Works? Mean reversion is a key element part of how all financial markets work. Mean reversion happens because the prices have a tendency to overshoot and undershoot their intrinsic value. These “price anomalies” happens because the impact of new information that hits the market takes time to be digested by the market. The market participants will take some time to understand the new information as the information is filtered slowly. Additionally, it takes time for the market to establish a fair value. Secondly, mean reversion trading also works because prices also move based on collective emotions. What this means for traders is that the price tends to overshoot to the downside a bit more than they overshoot to the upside. This is true because fear tends to be a bigger emotion than greed. Let’s put the puzzle pieces together and construct our reversion to the mean trading strategy.
Education
by Tradingstrategyguides
3
Tips and Tricks to create an EMA Crossover SystemIn this video I show you how to set up an EMA Crossover system as proscribed by Market Wizard Ed Seykota: -How to find what EMA lengths to use -How to reduce whipsaws -How to read the strategy results -What type of risk to use and how to limit drawdown -How to deal with higher fees -How to set up the alerts when you find a good EMA length combination Summary: -I've programmed the above methodology: search for "EMA Crossover" in the indicator search and pick the author "gregoirejohnb". -The Slow EMA should be 3x the Fast EMA -To take more trades: DECREASE the Length -To take fewer trades: INCREASE the Length -To reduce whipsaws: INCREASE the multiplier -Test a Long Only strategy on historically strong markets Remember, there are no magic numbers so don't stress over the "perfect" EMA lengths. Get the settings that look good to you with enough profit and as low of drawdown as possible, and then go trade. The secret to trading is limiting your risk!
Education
by gregoirejohnb
21
How to use MTF T-Line (8 EMA)T-Line stands for Trigger Line and is 8 EMA, concept invented and taught by American trader Steven Bigalow. He uses daily 8 EMA and stays in trades as long as price is above or below 8 daily ema. If price closes below or above 8 daily ema in the opposite direction he exits. I went further with this concept, implementing Multitimeframe 8 ema trading system which is very effective. For that one needs indicator able to plot higher resolution EMAS on lower resolution charts (Moving Average Collection by Wataru Inoue can do that - www.mql5.com - better than TradingvIew MTF ma function). But you need a powerful PC (8 GB RAM at least) as many PC freeze when applying MTF indicators especially on many charts. For exits, reversal or entries you may add Pivots (Camarilla, Fibonacci Pivots seem to be most effective resistance support levels, especially longterm ones yearly, monthly, weekly). But you are free tp use Ichimoku, daily, monthly, weekly highs, lows or whatever level tools convinient. At least this system will help you to stay on the right side of the market. This sytem works well with gold, oil, sp500, eurusd, btcusd and many other pairs. Good luck my friends!
Education
by ICFX
How To Trade EMA here i have set very good example on how you can trade EMA it's common for every asset that it follow the price of EMA ( the moving average ) let's take example i set 7 ema on weekly chart so it's total 49 days moving average so if price make bounce above this ema on weekly something has been cooking in the asset . it's 49 days downtrend same breakdown of EMA ( exponential moving average ) also shows upcoming correction in price on higher timeframe so don't ignore moving average use this EMA with the triangle and other pattern and make your trading better any asset always respect it moving average price if fall below major ema than it will take resistance if goes up than it will bounce when it touch EMA
Education
by TheLightCrypto
How to Identify & Utilize Market Strucutre In this video I go over how to identify what Market Structure you are in. Also how to utilize that structure to continue trading with the trend. I use the pair EURGBP to go over a bearish market with a deep retrace, later continuing into a down trend. As always THANK YOU and if you found this video helpful, please let me know by hitting that like button and/or leaving me a comment below. Also, feel free to share your opinion on this setup or other setups that you have. The more ideas we can generate together, the more informative these ideas become for newer traders. STAY BLESSED! ~ T$
Education
by OkayTrev
MA on BTC 🚀💣How to use moving averages!!! A moving average is used to help us forecast future prices and help us identify a trend. By looking at the slope of the moving average, we can better determine the potential direction of market prices 📈⁣ There are two types of moving averages✌🏼⁣ 🔵Simple MA⁣ 🔴Exponential MA⁣ With the use of SMAs we can identify if a pair is trending up, trending down or ranging. The one problem with SMAs is that they are susceptible to spikes. Signals can be false.⁣ EMA’s let’s traders know what is happening in more recent price action.⁣ Disadvanrege of using EMAs is that consolidation periods can present fakeouts The best use MAs in conjunction to eachother. Wait for crosses and use the MAs as a confirmation before enter into deal GOOD LUCK🧡⁣
BITSTAMP:BTCUSDEducation
by RocketBomb
12
What Are These Moving Averages?Moving averages rely on past data, they are considered to be lagging or trend following indicators. Regardless, they still have great power to cut through the noise and help determine where a market may be heading. Different types of moving averages There are various different types of moving averages that can be used by traders. Despite the various types, the MAs are most commonly broken down into two separate categories: simple moving averages (SMA) and exponential moving averages (EMA). Depending on the market and desired outcome, traders can choose which indicator will most likely benefit their setup. The simple moving average The SMA takes data from a set period of time and produces the average price of that security for the data set. The difference between an SMA and a basic average of the past prices is that with SMA, as soon as a new data set is entered, the oldest data set is ignored. So if the simple moving average calculates the mean based on 10 days worth of data, the entire data set is constantly being updated to only include the last 10 days. It's important to note that all data inputs in an SMA are weighted equally, regardless of how recently they were inputted. Traders who believe that there's more relevance to the newest data available often state that the equal weighting of the SMA is detrimental to the technical analysis. The exponential moving average (EMA) was created to address this problem. The exponential moving average EMAs are similar to SMAs in that they provide technical analysis based on past price changes. Nevertheless, the equation is a bit more complicated because an EMA assigns more weight and value to the most recent price inputs. Although both averages have value and are widely used, the EMA is more responsive to sudden price fluctuations and reversals. Cause EMAs are more likely to project price reversals faster than SMAs, they are often especially preferred by traders who are interested in short-term trading. It is important for a trader or investor to choose the type of moving average according to his personal strategies and goals, adjusting the settings accordingly. MAs of 50, 100, and 200 days are the most commonly used. How to trade with MA? Generally, a rising MA suggests an upward trend(acts as a support when rising under a price) and a falling MA indicates a downtrend(acts as resistance when falling above a price). Though, a moving average alone is not a really reliable and strong indicator. Therefore, MAs are constantly used in combination to spot bullish and bearish crossover signals. A crossover signal is created when two different MAs crossover in a chart. A bullish crossover (also known as a golden cross) happens when the short-term MA crosses above a long-term one, suggesting the start of an upward trend. In contrast, a bearish crossover (or death cross) happens when a short-term MA crosses below a long-term moving average, which indicates the beginning of a downtrend. One major downside of MAs is their delay time. Since MAs are lagging indicators that consider previous price action, the signals are often too late. For example, a bullish crossover may suggest a buy, but it may only happen after a significant rise in price. This suggests that even if the uptrend continues, potential profit may have been lost in that period between the rise in price and the crossover signal. Or even worse, a false golden cross signal may lead a trader to buy the local top just before a price drop. These fake buy signals are usually referred to as a bull trap. To put it all in a nutshell, Moving Averages are powerful TA indicators and one of the most widely used. The ability to analyze market trends in a data-driven way provides great penetration into how a market is performing. Remember that MAs and crossover signals should not be used alone and it is always more reliable to combine different TA indicators in order to avoid fake signals. Best regards EXCAVO
Education
by EXCAVO
11
Divergence in BTCUSDPrice while approaches its resistance level, is forming a divergence with MACD. Price is creating higher highs and MACD is forming lower highs. That means BTCUSD is losing its momentum. On the other hand there are confluence of sell orders in that resistance level. Therefore it probably can't break that level and goes down. But that's not enough for us. we need to catch a strong down move. What if it didn't breaks that level, but create a trading range around that resistance level? We do NOT want that. So we need evidence that shows us the price had reverse its move and is forming a downtrend. That evidence is our TRIGGER. The trigger could be break of a trend line, a candlestick pattern, or anything that shows we're entering a downtrend move. I used breakout of a trend line here. And for take profit, I used an 20 EMA as a trailing stop loss. Thanks for reading. Write your opinion in the comments.
BITSTAMP:BTCUSDEducation
by Trading-with-Ali
2
Moving Averages Crossover Divergence Masterclass Part 2Moving Averages Crossover Divergence Masterclass Part 2 In the previous masterclass, we saw two different ways of using MACD as an indicator. In Part 2, we'll look out for two other ways to use MACD along with other indicators. The two previous ways were: 1. Centreline Crossover 2. Signal-line Crossover Moving forward the two more ways are: 3. MACD + Awesome Oscillator: Awesome Oscillator - Bill William's Awesome Oscillator It is a momentum oscillator Calculated by subtracting 34-period SMA from 5-period SMA plotted through bar-midpoint (H+L/2) Clearly shows what is happening to the market driving force Bullish Scenario- Awesome Oscillator is greater than 0; If AO is moving up bullish trend is strengthening while if AO is moving down bullish trend is weakening Bearish Scenario- Awesome Oscillator is less than 0; If AO is moving down bearish trend is strengthening while if AO is moving up bearish trend is weakening Awesome Oscillator defined the predominant trend while MACD Signal line crossover(as discussed in Masterclass Part 1) is used to generate the trade signal. Thus BUY when AO >0 and MACD crosses up the signal line, while SELL when AO <0 and MACD crosses below the signal line To prevent fake signals, a stop loss can be set-up at the low for the entry candle. 4. MACD + Stochastic: Stochastic Indicator - Momentum Indicator Compares a particular closing price to a range of its prices over a certain period of time Just like MACD, it has faster and slower moving metrics Slow Stochastic Indicator (%K) = (C - L14)/(H14 - L14)*100 Fast Stochastic Indicator (%D) = 3 - period moving average of %K Bullish Scenario- Stochastic Indicator < 20 i.e. oversold condition; market trading upward, prices will close near the high Bearish Scenario- Stochastic Indicator > 80 i.e. overbought condition; market trading downward, prices will close near the low MACD Centerline Crossover(as discussed in Masterclass Part 1) defines the predominant trend while the Stochastic Indicator (%K) is used to generate the trade signal. Thus BUY when MACD > 0 and Stochastic Oscillator < 20, while SELL when MACD <0 and Stochastic Oscillator >80 Trade signals can also be generated using crossovers of %K and %D for the Stochastic Oscillator. A lot more interesting things can be done using MACD, but we'll move to the next indicator in our next Masterclass. STAY TUNED ---------------------------------------------------------------------------------------- Your questions and comments are most welcome. If you find the post useful, please like, share, and follow to make sure that you get more information once I publish it. - Mudrex
Education
by Mudrex
6
MA 10 50 Double Crossing perfectly shown on BTCUSDT DailyReference: Technical Analysis of the Financial Markets by John Murphy. Moving Averages are one of the very useful trend-following tools. But I would like to elaborate more on the meaning of the term " trend-following": It indicates the tools which does not provide us with specific price targets, but it shows us if a specific up- or downtrend are in action. By means of such tools, we detect these trends and simply jump on the trend and take profit. Regardless of other technical tools which unfold price objectives, obviously, the amount of the profit depends heavily on your mentality and the control you have on your feeling of greed and fear :) 2 very fast notes on Moving Averages: 1- They perform poorly in sideway situation (when price move in a horizontal channel) 2- Signals are: i. when prices close below the MA----> sell ii. when prices close above the MA----> buy iii. when lower degree MA crosses above the MA of higher degree---> buy iiii. when lower degree MA crosses below the MA of higher degree---> sell Important MA pairs to see the double crossing daily timeframe: 5 & 20 / 10 & 50 MAs for triple crossing: 4 & 9& 18 ENJOY your TRADEs
Education
by Cryptestan
2
Moving Averages Crossover Masterclass Part 1Moving Average Convergence Divergence (MACD) Created by Gerald Appel It was designed in order to reveal changes in the direction, strength, momentum, and duration of a trend in a stock’s price It is a trend-following momentum indicator which shows the relationship between two moving averages of a stock’s price As the name suggests, MACD is all about the convergence and divergence of two moving averages Convergence occurs when the moving averages move towards each other while Divergence occurs when the moving averages move away from each other Three main components of MACD Calculation: MACD line, Signal line, and MACD Histogram MACD line – Calculated by subtracting 26-day EMA (Exponential Moving Average) from 12-day EMA. Exponential Moving Average (EMA) is a type of moving average which places a greater weightage on the recent data points when compared to the past data points, making it react more significantly than a simple moving average. Signal line – 9-day EMA of the MACD line is called the signal line Histogram – Histogram is the graphical distance between MACD and the signal line, height used to assess how strong the price is moving in the given direction There are three main parameters of MACD as a whole: Look-back period of long term EMA to be formulated for MACD Look-back period of short term EMA to be formulated for MACD Look-back period of EMA to be formulated for signal line calculation There are many ways MACD can be used to formulate trading strategy, out of which we will be discussing two in this post: 1. Centerline Crossover Centerline: Zero lines above and below which the MACD line oscillates, diving the canvas in bullish and bearish regions Bullish Crossover when MACD line moves above zero i.e. 12-EMA crosses up 26-EMA Bearish Crossover when MACD line moves below zero i.e. 12-EMA crosses down 26-EMA Signal Generation BUY when MACD crosses up 0 while SELL when MACD crosses down 0 2. Signal line crossover The signal line is 9-day EMA of MACD that means it trails the MACD thereby indicating momentum changes in convergence-divergence Bullish crossover when MACD turns up and crosses above the signal line Bearish crossover when MACD turns down and crosses below the signal line Signal Generation BUY when MACD crosses up the signal line and SELL when MACD crosses down the signal line A lot more interesting things can be done using MACD, about which we'll be talking in the next Masterclass on MACD. STAY TUNED! ---------------------------------------------------------------------------------------- Your questions and comments are most welcome. If you find the post useful, please like, share, and follow to make sure that you get more information once published. - Mudrex
BITSTAMP:ETHUSDEducation
by Mudrex
21
Why I don't use MA/EMA indicators in my analysis Hello everyone: In this video, I am going to explain my reasonings on why I personally don't use MA/EMA in my analysis. I will start off by saying that I have nothing against traders who use them and are consistent and profitable. I am sure there are many who do use indicators in their analysis along with their trading plan, risk management that find success in trading in given marker conditions. For me, my trading style focuses on price action structures/patterns. I am analyzing the market in its pure form of movement. In order for me to be clear on the price action, I need to “remove” all sorts of other “noise” on the chart. This is when having MA/EMA, and other common indicators can create potential issues for my style of trading. When we have indicators on the chart, it normally does help traders to identify “trending” markets, overbought/sold, as an example. The most used ones such as MA/EMA are going to help traders to find trends of continuations, but it doesn't necessarily become a target or support/resistance for the price to bounce off. Many find trading through such an “area” would be not ideal, hence they can take profit or target that general area. While, some can use that as a stop loss area, so long the price will “reverse” from it. However, when I see the price action on the HTF is in the impulsive phrase of the market conditions, on the LTF the indicators will not “catch up” to the most current price conditions. As the indicators are calculated based on the price movement, and since an impulse pushes up/down the price very aggressively, it takes time for them to take the movement into its equations and move according to it. The important thing is to not “overload” your chart with too many indicators and lines going across. There will be too many “contradicting” biases and it will confuse you as a trader. Simplicity is best, and less is more. Thank you
Education
by jojofang0901
12