Author

Topic: Trading Concepts: Moving Average (Read 462 times)

legendary
Activity: 2394
Merit: 6581
be constructive or S.T.F.U
April 19, 2018, 05:13:09 PM
#19
I'm looking into learning about trading one concept at a time. and I think this way is better for those who are new to trading. please share whatever information you can spare about this indicator "moving average" what it means, how to use it, if the candle is above/below the moving average, ...etc.

if you wanna be successful at trading, then ditch all indicators. show me they worked 1 time i show you they failed another 9 times. stick to resistance / support both horizontal lines and trend lines. they are much more accurate and easier to work with. after you have trained yourself on using them , learn about price action , it helps you stop perfect entries. other than that you are just wasting a lot of energy.

one proof of my theory is , take moving averages for example. everyone uses different combination , same thing goes for RSI, MACD . everyone has a different number on their chart thus price does not respect them. do a back test and you will see to yourself.


I just subscribed to this forum , once i am allowed to post pictures and all, i will post some basic trading posts.
hero member
Activity: 2996
Merit: 609
April 19, 2018, 05:01:23 PM
#18
I'm looking into learning about trading one concept at a time. and I think this way is better for those who are new to trading. please share whatever information you can spare about this indicator "moving average" what it means, how to use it, if the candle is above/below the moving average, ...etc.
It works, but the changes will snowball in crypto and be a lot faster than elsewhere, like the stock market. A two hour window can show the complete rise, assumed success and the death of a single coin. Just think of that acandle stick and where it is pointing and know that the arrow should be considered a lot bigger than it appears and the value can be out there a good 30% in the amount of time it takes to just log in.

Ive been using up EMA on trading but not all the times signals are accurate and sameas you said changes will snowball in crypto which you would really got shocked due to fast transition which decision making would be crucial.
In simple words.
Moving Average is a line which consists of dots, every dot is an average value of the price for the given period (for example for 50 days).
This way if you will compare current price to the current value of MA - you will know if the price is growing regarding the last given period (50 days) or falling.
There 2 types of Moving Averages which is SMA and EMA. These averages usage would entirely depending on which we are going, either for long or short term trades.
newbie
Activity: 6
Merit: 0
April 19, 2018, 04:55:28 PM
#17
In simple words.
Moving Average is a line which consists of dots, every dot is an average value of the price for the given period (for example for 50 days).
This way if you will compare current price to the current value of MA - you will know if the price is growing regarding the last given period (50 days) or falling.
hero member
Activity: 938
Merit: 503
👉bit.ly/3QXp3oh | 🔥 Ultimate Launc
April 19, 2018, 01:01:31 PM
#16
I'm looking into learning about trading one concept at a time. and I think this way is better for those who are new to trading. please share whatever information you can spare about this indicator "moving average" what it means, how to use it, if the candle is above/below the moving average, ...etc.
It works, but the changes will snowball in crypto and be a lot faster than elsewhere, like the stock market. A two hour window can show the complete rise, assumed success and the death of a single coin. Just think of that acandle stick and where it is pointing and know that the arrow should be considered a lot bigger than it appears and the value can be out there a good 30% in the amount of time it takes to just log in.
newbie
Activity: 239
Merit: 0
March 20, 2018, 01:32:45 PM
#15
I'm also a newbie in trading so I can only share the source where I get information.
Normaly I use investopedia, here is an article about SMA (simple moving average): http://www.investopedia.com/terms/s/sma.asp
It is normaly used to determine the current trand. I would recommend you to read this article and also read about  golden cross and death cross. Also some links in "next up" field will be usefull for you.
thank you for the link provided
much of the science that I can about this I hope I can get better at trading bitcoin so I can get a bigger profit in trading bitcoin
full member
Activity: 350
Merit: 102
March 04, 2018, 10:47:05 PM
#14
the use of moving averages is to keep track of the trend, detect the change once it has already occurred. This is the great difference of this type of indicators with respect to the traditional chartist formations, since it does not anticipate anything, it is a follower, not a leader indicator. therefore, they are used as input or output signals. That is, a purchase signal is produced if the prices of the asset cross the average rise and there will be a sell signal when prices cross it downward.
legendary
Activity: 1806
Merit: 1521
January 26, 2018, 06:32:43 PM
#13
Moving averages are mostly only used by amateurs these days.  As has been mentioned they take the average closing price of an asset over a set period of sessions and that's the value.

The problem with this is that close prices for various sessions aren't always useful.   VWAP or Volume weighted average price is a much more useful tool because value in a market is dictated by volume.   Rejection of heaviest volume is a more powerful signal than rejection of the average closing price of whatever session you're looking at. 

I disagree. I think you're missing what MAs are all about: time. It's not just about price/volume history, but time, since mean reversion is such a crucial aspect of market analysis. That's why very popular tools like Bollinger Bands still use simple MAs (and standard deviations thereof).

I like to use traditional MAs for golden crosses and death crosses (signs of strong trend continuation). 200/50 MA crosses are good performers. When it comes to volume, I prefer to focus on high relative volume bars (capitulation points) and volume profiles to find support and resistance levels. OBV is useful as well.
newbie
Activity: 20
Merit: 0
January 26, 2018, 06:02:23 PM
#12
Moving averages are mostly only used by amateurs these days.  As has been mentioned they take the average closing price of an asset over a set period of sessions and that's the value.

The problem with this is that close prices for various sessions aren't always useful.   VWAP or Volume weighted average price is a much more useful tool because value in a market is dictated by volume.   Rejection of heaviest volume is a more powerful signal than rejection of the average closing price of whatever session you're looking at. 
member
Activity: 238
Merit: 10
Blockchain with solar energy
January 26, 2018, 03:50:08 PM
#11
Indikator Moving Average is popular for forex trading, stock and binary trading but also can use it for altcoin trading. The concept of this indikator is to help and to know level price to buy and sell,  when the price in above moving average is mean time to buy and when the price on below moving average is mean time to sell. And for intraday trading the good moving average to use it is periode 50 and 100 and use time frame 1 hour.
Moving Average is an indicator of the average value of a stock price over a period of time. When stock prices change, the average price also changes. Moving Average is also being used in the Cryptocurrency trade.
Dynamic averages can be calculated based on any series of data including open price, highest price, lowest price, closing price, transaction volume or other indicator. Calculating the moving average for the other moving average is also very common.
hero member
Activity: 1134
Merit: 517
December 23, 2017, 06:57:57 AM
#10
Moving averages are quite popular with traders and investors in the financial markets, because of their ease of use and the large extent to which the markets responds to them. In the light of that, a good number of the many popular indicators and trading tools we have today were actually derived from moving averages and that includes MACD, Bollinger Bands, Stochastic, etc. They are often used for the identification of market trends, but I prefer to go a step further in using them as dynamic support and resistance levels.

A number of traders in the cryptomarket may have had issues applying them in their trading and that is not unlikely, because  the cryptocurrency market as is, is still undercapitalized, thus creating a leeway for easier market manipulation by whales, unlike the case with other financial market assets. At any rate, moving averages are still useful in crypto trading especially if a trader is knowledgeable enough to enhance their signals with other confirmatory indicators as well as an understanding that these tools only serve to help a trader reach sound trading decisions.
member
Activity: 462
Merit: 11
December 23, 2017, 03:43:12 AM
#9
Indikator Moving Average is popular for forex trading, stock and binary trading but also can use it for altcoin trading. The concept of this indikator is to help and to know level price to buy and sell,  when the price in above moving average is mean time to buy and when the price on below moving average is mean time to sell. And for intraday trading the good moving average to use it is periode 50 and 100 and use time frame 1 hour.
member
Activity: 210
Merit: 14
December 23, 2017, 02:32:26 AM
#8
Normally in stocks you would probably use 20-, 50 ,100 and 200 day/hour/minutes moving average to figure out the long term trends of a stock. That could also be applied to cryptos but since cryptos are moving so fast I would say that using shorter moving averages maybe better.

But cryptocurrencies are very volatile so it is hard to use moving averages to to price predictions for day trading or such. On the other hand what it CAN be used for is finding levels of support during retracements (also levels of resistance when going back up after longer dip). Especially if a bigger moving average, such as 50 or 100 coincide with an earlier level of resistance during a dip, that might be a level to look to buy at. Since the saying goes "Previous resistance often acts as new support".

This is how I use moving averages when trading cryptos anyway but can't say that I am very good at it Wink
full member
Activity: 644
Merit: 101
December 23, 2017, 02:10:29 AM
#7
Moving average is simple indikator and easy to understand it . Moving Average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks, or any time period the trader chooses. There are advantages to using a moving average in your trading, as well options on what type of moving average to use. Moving average strategies are also popular and can be tailored to any time frame, suiting both long term investors and short-term traders.

full member
Activity: 574
Merit: 102
https://adonx.one
November 15, 2017, 08:23:47 PM
#6
Moving average is one of the popular indikator for forex trading and stock trading too. This indikator is easy to understant and will more accurate in daliy chart with periode 50 and 100. And also this indikator easy to use for altcoin trading, the concept is when the price above the Moving average is mean strong signal to buy, and if the price below the Moving average that mean signal for sell.
hero member
Activity: 1414
Merit: 505
Backed.Finance
November 15, 2017, 07:51:12 PM
#5
Hi, I'm using Moving average 13 34... I am not sure where and how it was made but it does the job for me. You set your candles to 30 minutes and first moving average to 13 candles exponential (set red color to it) and you set the 2nd moving average to 34 exponential (make it green). You have your setup right there. Now you watch the red and green lines, when the red line is beyond green one, that is your signal to buy, when the green line crosses over and goes under the red one, it's time to sell. You also have to look at the candles, you can't ignore them but these indicators will help you.

Example from tradingview with ETH - BTC



I dont have a solid understanding of this MA/MACD but I am using this trading concepts as an indicator when I do trading. I just only observed when the green line crossing the red line whether its going up or down. This actually helps me in doing decisions when I trade.
sr. member
Activity: 1400
Merit: 259
November 15, 2017, 06:08:04 PM
#4
So much to learn. I dont know about this moving average.
I guess it is worth a try. Thank you for those who shared their information about it.
I hope this also works for me.
I am just one of those who trade just basing on how the market moves. Sells and buys.  Cheesy it also works for me.
full member
Activity: 924
Merit: 148
October 30, 2017, 01:34:34 PM
#3
I'm also a newbie in trading so I can only share the source where I get information.
Normaly I use investopedia, here is an article about SMA (simple moving average): http://www.investopedia.com/terms/s/sma.asp
It is normaly used to determine the current trand. I would recommend you to read this article and also read about  golden cross and death cross. Also some links in "next up" field will be usefull for you.
newbie
Activity: 1
Merit: 0
October 30, 2017, 12:24:48 PM
#2
Hi, I'm using Moving average 13 34... I am not sure where and how it was made but it does the job for me. You set your candles to 30 minutes and first moving average to 13 candles exponential (set red color to it) and you set the 2nd moving average to 34 exponential (make it green). You have your setup right there. Now you watch the red and green lines, when the red line is beyond green one, that is your signal to buy, when the green line crosses over and goes under the red one, it's time to sell. You also have to look at the candles, you can't ignore them but these indicators will help you.

Example from tradingview with ETH - BTC

https://imgur.com/a/YoFNd
full member
Activity: 322
Merit: 100
October 30, 2017, 10:29:15 AM
#1
I'm looking into learning about trading one concept at a time. and I think this way is better for those who are new to trading. please share whatever information you can spare about this indicator "moving average" what it means, how to use it, if the candle is above/below the moving average, ...etc.
Jump to: