Using Moving average to trade the forex market

Using Moving average to trade the forex market


Moving average is a trend following indicator. Since moving average is a trend following indicator, it is therefore used to indicate the direction of the market, that is, whether the market is moving in an upward or downwards direction.

  Since moving average is a trend following indicator, it is therefore based on bullish and bearish as well as support and resistance. Therefore, since moving average is based on bullish and bearish, it, therefore, follows that when the market is moving upwards, the moving average will also be moving upwards while when the market is moving downwards, the moving average will also be moving downwards. Based on support and resistance, we can, therefore, say that when the price rises above the highest high of a moving average when the two are in an upward movement, a downward reversal direction will be experienced by the two thus signaling the trader to close any buy position and open a sell position. On the other hand, when the price falls below the lowest low of a moving average when the two are in a downward movement, an upward reversal direction will be experienced by the two thus signaling the trader to close any sell position and open a buy position. This is indicated as follows;                           Moving average in Support condition For support condition, an upward reversal is always experienced. This is indicated from the candlesticks chart below;   support.png   From the candlesticks chart above, there is point A which is located along the moving average. Initially, the market was in a bearish trend. Later on, at point A, the price falls below the lowest low of a moving average thus causing the market to gain an upward support. This will signal the trader to close any sell position and open a buy position at point A since the market is starting to move upward as indicated.      Moving average in Resistance condition For resistance condition, a downward reversal is always experienced. This is indicated from the candlesticks chart below;  
  resistance.png   From the candlesticks chart above, there is point A which is located along the moving average. Initially, the market was in a bullish trend. Later on, at point A, the price rises above the highest high of a moving average thus causing the market to resist to continue moving upward and instead to reverse downwards. This will signal the trader to close any buy position and open a sell position at point A since the market is starting to move downwards as indicated.   Recommendation: If you are a day trader just use 1 min, 5 min, 15 min and 30 min timeframe while if you are a swing trader just use 1 hour and above timeframe if you want moving average indicator to work well for you.   If you feel am doing great work, you are always free to make your donation: Here are our donation details;   FIAT DONATION   Neteller: mudigoomondi@gmail.com skrill: mudigoomondi@gmail.com   Cryptocurrency donation   Bitcoin   :1Fp5aLgRB6WJnC7nxGw57M3JbbexaAWHG2   Ethereum;   0x346570c491b76c7cd51699bdd272762111b743a9   Litecoin:   LeEH7B82ccXJ6QoibCryGJNpDGNx2x77fL   Dogecoin:   DLShs2vqhMc1ggqo8MPPMBTcPAZdqCZoWd      


quintomudigo
quintomudigo

Trader, Blockchain Technologist and Contentpreneur. Also founder and CEO @ Teacher Forex School.


Teacher forex school
Teacher forex school

Teacher forex school provides individual with training regarding to forex trading and cryptocurrency trading. We also share trading ideas online for both crypto and forex market

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