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Moving Averages trading

Tags: #economics #investments

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70% of the time the market is sideways.

Typical exponential moving average strategies:
MA 10
MA 21
MA 50 or 55 - used mostly by Leo
MA 200

Usually golden cross is more reactive than proactive (when you see it the move has already happened) that's why golden cross during sideways makes not much sense. And sideways trading doesn't work at all with moving averages (especially on 4h charts)

You can use MA as a trend system and dynamic resistance/support system but not trade based on golden cross

When MA 55 closes one candle on W chart below -> likely bear market for couple of months. Same with MA21 but you need couple of rejection

References