Survey: How do you use moving averages in trading?

The moving average is a commonly used auxiliary tool, which may be part of the system, or it may be completely the moving average system. In the latest survey of the Forex Academy, some foreign exchange friends answered how they use the moving average to trade. If you have any good methods in the process of using the moving average, you can share them in the reply:

@Unexpired Famous Goods

The 20-day moving average is the core indicator of my system, and it is used to judge the trend and open and close positions. The way the 20-day moving average judges the trend is different from the common one, which is my own core part. This can only be kept secret. Build position squaring is the same as the common one, and if the price breaks through MA20, it will be flat.

For me, the hardest part about making a trend is the shock.

@Bobo

I once learned and was obsessed with the moving average, and later found that the moving average indicator is the same as most indicatorslagging indicatorIn fact, the ready-made indicators you can see are basically like this, generated from past dataAnd trying to use past data to predict the future, the effect can be imaginedThe significance of an indicator lies in the design thinking when designing this indicator. Understanding and designing your own application is the right path.It's easy to use it, but you can't use it directly with your heart.

@temple owner

Three moving averages cross filter, determine the signal, anyway, moving averages lag objectively speaking, do not feel any advantage.

@

This is a threaded daily.

For me, the moving average is 1. The identification of long and short, short is above the long, and below the short. 2. Enough, the break of the short average of the five waves represents the beginning of the pullback. The destination of the pullback is near the bottom of the four waves, and it is also near the long moving average. 3. In fact, according to the speed ratio of the long moving average up, you can know the approximate position of the top. 4. After the start of a rise, the first two steps on the short moving average are extremely favorable points for adding positions.

@Strings in the sky

Take doing more.

The high and low points before crossing the moving average are boxes, which are sold on the upper edge and bought on the lower edge.

Break through the upper edge of the box and chase back. Break through the lower edge of the box and stop loss.

I'm at most 90% of the time. Not empty unless the bubble is obvious and has burst.

@Mumu

No moving average, only volume price, moving average is too far from the market.

I have done models of various poses of the moving average, but no method has an independent advantage. The most stable is the 20-day line, and the most advantageous in direction judgment is the weekly line.

The significance of the moving average is still in manual trading, which helps to quickly see the market and roughly determine the direction.

@Sleeping Lamb 520

The average value of 108, 114, different platforms, these values are random changes, and I am not forced to use the average, but the market recognizes it I will use, do not recognize it can not be used indiscriminately

The circle is my empty space.

Why open short, take a closer look at the relationship between price and moving average, and you will understand

@Knight

I use the 50-100 moving average on foreign exchange. 50 is ema, 100 is sma, where 50 is further spread, and the increase of 50ema is calculated according to the highest price and the lowest price, which forms the graph below. Because of the lag of the moving average itself, I miss a lot of good markets, but also miss a lot of wrong markets. At present, I am making a stable profit. In addition, I only use the moving average, and the rest are supported.

15 minutes dead fork, in case, if you encounter the channel after 5 minutes dead fork, short. If you trade within a day, it will take 4 hours and 1 hour, combined with the pressure level and the channel you drew.

@Xiaoyao

Moving averages are great, let's talk about some insights:

1. The moving average contains a time factor, which is in line with the process of the formation and development of events, that is, the process of the formation of price rises and falls. Earn money from trends.

2. One moving average is enough, operate according to the moving average inflection point.

3. Shake hedging, control risk. Unilateral profit, let profits run.

After years of searching for various trading methods, we finally returned to the moving average.

@Three views are very positive

At this stage, I mainly use two 20-day lines and annual lines for the moving average part. Don't be superstitious about absolute support levels, pressure levels, etc. It works sometimes, but it doesn't work in many cases, and the annual line is the same. Don't think that long periods are absolutely accurate, they are all relative.

The stock market mainly uses the annual line when it resumes trading. It does not mean that it has fallen to the annual line. It is a support level. We need to wait for him to confirm. After walking out, we will know whether it is an effective support. Sometimes if you decide to buy, you will also look at the quantity and energy. Of course, things are not absolute.

I will also pay attention to the ticket to break through the annual line, but I will not start immediately, and then I missed a lot of opportunities. But it doesn't matter, and I didn't lose money. The 20-day line is used less in the stock market. After a lot of observation, I will choose to step back on the 20-day line to enter the market. There are some breakthroughs that will also start, but very few. The general idea is to wait for the correction, and the stop loss is placed a little below the annual line or the 20-day line, so my stop loss is basically very small. The future market moving average is also part of my system, mainly the 20-line, which is also used by the public. There is nothing new.

@Chen Yi

The moving average belongs to the operation line, and the level of doing it ranges from 1 minute to 30 minutes. Looking at the naked K, I can't take care of it. I use the moving average to save time. I only build a position according to the K line when I reach the vicinity of the moving average. Of course, I just learned and still lost money.

@I'm not Stephen Chow

I feel that I am rather peculiar. I am neither a person who looks at the moving average to make transactions, nor am I an absolute naked kanist.

I basically don't use the moving average to predict the trend of the market, because the moving average lags behind and the prediction value is not high.

But I also use the moving average as support or resistance to judge, the price has broken through a certain moving average, where the price is at this stage, etc. My candlestick chart has also been open with the moving average, since I prefer to do inversions, most of the functions of the moving average for me are support, resistance, and judgment of what stage the price has reached these side effects.

@Ant Meow

The moving average doesn't have to be too much, just choose one or two decisions that determine the direction.

For example, look long online and short offline.

At the same time, the size of the parameters must be in line with their own nature. Those who are impatient can choose a short-term moving average, while those who are slow can choose a long-term stable one.

On this basis, combined with volume and price, Dow theory, and fund management, we can establish a set of effective holy grails of our own.

@Senior Trader

In fact, those who are interested in moving averages can read several books on the "Eight Laws of Genevieve" to strengthen their understanding and application of moving averages

@Barley

The moving average is one of the most commonly used analytical indicators, which reflects the average cost change of the market in the past period of time. A moving average system formed by a single moving average or with multiple moving averages can provide a basis for judging market trends, and can also play the role of support and resistance.

First, the composition of the moving average

Moving averages, according to the different calculation methods, can be divided into ordinary moving averages, exponential moving averages, smooth moving averages and weighted moving averages. Here I mainly talk about ordinary moving averages and exponential moving averages, which are also my more commonly used moving averages.

Ordinary moving average: A normal average of the closing price of a certain period of time in the past. For example, the 20-day moving average is a value obtained by adding the closing prices of the past 20 trading days and dividing by 20; then pushing forward 20 trading days from yesterday, another value is calculated in the same way, and so on, connecting these values together to form a normal moving average.

Exponential moving average: The formation method is exactly the same as that of the ordinary moving average, but the calculation method is different when calculating the moving average value. For example, the 20-day moving average, the exponential moving average takes the method of exponential weighted average, and the closer it is to the day, the greater the proportion, rather than distributing the proportion equally like the ordinary moving average. Therefore, the exponential moving average can reflect the latest changes faster in most cases.

The pros and cons of the two: There is no absolute pros and cons. In different stages of operation, the two can reflect different effects, and the experience component when selecting is relatively large. Individuals are more accustomed to using exponential moving averages, using the combination of multiple exponential moving averages to assist in judging market trends.

The effect of the two different moving averages reflected on the EUR/USD daily chart, where the moving average parameters are set to 20, where the red moving average is the ordinary 20-day moving average, and the blue moving average is the 20-day exponential moving average. As can be seen from the picture, in most cases the turning speed of the exponential moving average is relatively earlier than the ordinary moving average, which can keep up with the market trend relatively quickly.

Description: Generally speaking, the closing price is used to calculate the moving average, but the lowest price, the highest price, or the opening price can also be used depending on demand.

Second, the setting of the moving average system

If multiple regular moving averages are arranged together, a more helpful moving average system can be formed for analysis.

In general, when analyzing with a moving average system, the common arrangement of parameters is as follows:

A, 5, 10, 20, 30, 40, 50 (equal span arrangement)

B, 5, 8, 13, 21, 34, 55 (Fibonacci arrangement)

On the basis of these two arrangements, the averages of 125, 200 and 250 parameters are added.

The above are some personal methods. If you are interested, you can try to set them up. It may be helpful for your trading system.

@Reijin Atlas

Medium and long term, ten-week moving average is enough

The short-term 10-day moving average is the main one, and it is more accurate with the 5th and 15th.

You can try it yourself. The accuracy rate is extremely high. It is proper to do the steep rise and fall of the moving average.

@Suzuki

(1) The combination of the 5-day, 10-day, and 30-day moving averages is one of the most commonly used combinations by investors, with strong practicality and reliability. Among them, the 5-day and 10-day moving averages can be used to judge the short-term trend, while the 30-day moving averages are used to judge the medium-term trend. When the price breaks through the 5-day and 10-day moving averages upward, it indicates that the short-term trend of the stock has strengthened. When it breaks through the 30-day moving averages, the medium-term trend has strengthened and it can generally be confirmed that the bookmaker is about to pull up after building a position. The three moving averages below, especially the golden intersection of the three moving averages, are a strong support when the price reverses.

(2) If the price rises after the three moving averages on the 5th, 10th, and 30th have formed a golden cross, the trading volume should be gradually enlarged, and the pullback trading volume should be significantly contracted, especially when breaking through the 30-day moving average. Otherwise, its reliability will be reduced, and at least its increase will be limited.

(3) Generally speaking, after the three moving averages on the 5th, 10th, and 30th form a golden cross, they are all at the bottom of the medium term. The market outlook should have a medium-term upward trend, especially the bottom reversal pattern such as double bottom, head and shoulders. When the bottom is to be broken through, it is more reliable to form a golden cross with three moving averages. In case the three moving averages form a golden cross in the middle of the downtrend and are mistaken for a medium-term bottom, the increase after buying is not large, but the price quickly falls below the three moving averages and the three moving averages form a death cross divergence downward, indicating that the early stage is only a rebound, and the decline has not yet ended. When the price falls below the 30-day moving average, it should be stopped and eliminated

In a sideways trend, the 5-day, 10-day, and 30-day moving averages diverge upward from the adhesive shape, which is the best time to buy. The trends in price operation are: uptrend, downtrend, and sideways trend. The uptrend and downtrend are easy to judge because the moving average shows a long or short arrangement due to the clear direction, while the sideways trend is more difficult to judge its subsequent breakthrough direction because the moving average is mostly intertwined with each other. Besides, sideways trends can appear in the middle and bottom of a downtrend, as well as in the middle and top of an uptrend, which further enhances the difficulty of judgment. Therefore, the best way to deal with sideways trends is to take action after the price breaks through and the trend is clear. From the perspective of moving averages, it is to buy or sell when it diverges up or down by a sticky winding. Generally speaking, sideways trends formed after a sharp drop in a downtrend tend to break down, while sideways trends formed after a long decline are mostly bottoms. On the contrary, sideways trends formed after a sharp rise in an uptrend tend to break up and are mostly long-listed stocks. For example, sideways trends that have risen or risen for too long are more likely to form a top. Sometimes even an upward break is a long trap. Therefore, once the sideways trend formed in the low-price area in the middle of an uptrend and after a long-term decline breaks through upwards and the 5-day, 10-day, and 30-day moving averages diverge upward from the adhesive shape, it is a clear opportunity to buy in the short and medium term.

@Big V

I will talk about the next person in the real operation will really use; the first thing to know is what is the long arrangement of the moving average. The following figure has already illustrated (of course, I can't distinguish between short-period moving averages and long-period moving averages. It is recommended to look at the basics of moving averages first)

This is the operation method in the trend market. If the market is volatile, it is not recommended to refer only to the moving average. It is recommended to look at it in combination with Bollinger Bands! In fact, what I want to say is that the information and direction given by a single indicator may be limited, and when using the moving average, we are not just looking at the moving average of a cycle. In addition, paying attention to the news surface during operation is a must-do homework. After all, in front of the news surface, technical indicators are really just floating clouds!

@Homeopathy

The moving average is a reflection of the average price and an important indicator that can reflect the average price of the market. I often use the three-moving average system, which can more clearly capture the trending market. Why not one moving average and two moving averages? One moving average can be traded, but it is difficult for ordinary people to use it well; two moving averages are practical, but they cannot distinguish between trends and volatile markets, and only three moving averages can be distinguished at a glance.

@Dapeng

The moving average has a lag, so the crossing of the moving average is only used for reference, not to build a position. I use the moving average more to value its blocking and supporting role, usually on the 10th, 22nd, and 60th. The moving average system makes the unilateral trend more intuitive, but if it is a shock, the role of the moving average will be greatly reduced, and even confuse the line of sight to affect the judgment. I think the biggest role of the moving average is to have a certain support or blocking effect, which is actually a curved trend line. Use the moving average to first determine the general direction, preferably a unilateral trend, and then wait for the price to reach the vicinity of the moving average, and build a position along the trend. If the long stop is set below the moving average, the short is vice versa. The stop loss is preferably not less than 30 points, and the take profit is greater than 45 points. (Calculated according to the minimum profit-loss ratio of 150%) Usually, the moving average system is not used alone. It is best to cooperate with the K-line and trend pattern, and it can also be comprehensively referenced with MACD technical indicators. For example, if MACD has a top divergence, the moving average also has a trend of dead fork. The K-line pattern has not crossed the previous high point, which means that the trend is likely to develop downwards. You can consider entering the market and shorting, and vice versa. Do not rely too much on the moving average when making trades. The winning rate of multiple indicators verifying each other will be higher.