Moving AveragesTechnical Analysis
Moving Averages are trend following indicators that show lines representing a smoothened lagging average of price past action. There’s many types, but typically a simple or exponential moving average is used. The most important setting is the time frame. They are typically used in multiples of 5 or 10. Most frequently used settings are 5, 20, 50, 100, and 200. Higher periods have less noise, but are slower to give crossover signals.
20 Moving Average = Bright Blue
50 Moving Average = Pink
100 Moving Average = Green
200 Moving Average = Purple
Trading systems based on moving averages use crossovers to generate potential trade indications. A single moving average crossover system waits for price to cross the single moving average to generate a trade. It goes long when price crosses the moving average up, and short when it crosses down. Single average crossover systems are more prone to whipsaws. Double moving average systems wait for a short term moving average to cross a longer term moving average. This helps ensure there is an active trend. If the shorter average crosses up, buy. If the shorter average crosses down, sell.
Note that you can have either consistency or sensitivity with moving average crossover system. Shorter distances increase sensitivity and give earlier entries, but they are more prone to whipsaw signals. Longer distances have decreased sensitivity and give late signals, but they’re more likely to be accurate.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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