![]() ![]() Here is an illustration to show you how they look: Fast and Slow Moving Averages ![]() Moving average combinations are divided into “slow” and “fast”. This makes the Exponential Moving Average a preferred option to many day traders. Since the Exponential Moving Average gives more weight to recent data, it is more sensitive to the recent price moves. Exponential Moving AverageĪn Exponential Moving Average is a variation of moving averages- one that gives more weighing to recent data as opposed to all data. The Simple Moving Average is a preferred choice amongst the longer-term traders. The simple moving average just averages past data.Īs the simplest moving average out there, it is also the most popular kind.Ī simple moving average calculates the average selected period of prices.įor example, a 50-day simple moving average would select the past 50 days of data (usually close of the day) and will plot the MA-line accordingly. So, for the sake of simplicity, I will stick to those two types in this article. There are a few different types of Moving Averages and amongst them the most famous ones are:įrom my experience, probably the two most widely used types of moving averages are Simple and Exponential. #12: Summing it all up- Best Moving Average.#10: Best Moving Average for Long-Term Trading.#8: Best Moving Average for Day Trading. ![]() #5: Moving Averages and Money Management.#4: Using Moving Averages with Supply and Demand Zones.#3: Using Moving Averages with Support and Resistance.#2: Using Moving Averages with Indicators. ![]()
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