Moving Average (MA) is a trend indicator that is used to determine the trend is going at the time. Based on data from the candlestick in the past, we can predict future prices by looking at MA indicators. How I get the MA indicator? Relax, I'll show you how the way. Let open your trading terminal!
 |
| Img 1 (by. Weihome Team) |
White line passing between the candlestick is a moving average. MA have some type. But here, I will only describe two types of MA. Because we will only use one type of MA only. We make this into a simple lesson. Sometimes, simple is better.
OK, there are two types of MA which will be discussed here.
• Simple Moving Average (SMA)
• Exponential Moving Average (EMA)
SMA (simple moving average) is "the simplest MA" and does not use weighting in the calculation of the closing price. EMA (exponential moving average) is a refinement of the method of SMA. Why is perfected? because the SMA very late in delivering the signal, then the EMA was born to provide early signals. The drawback, if you use the SMA, usually will be late to entry because the signal is given too late. But if you are using the EMA, usually you will often get stuck in false signals, because EMA provides an early signal. Well .. well .. in this world nothing is perfect. So, which one is best to use? Depending on your character. If you prefer to secure thing, use the SMA is a good choice. However, if you prefer to a risky thing, it looks like the EMA would be a good friend for your adventure.
Where can I find SMA or EMA? Easy, follow the first step in the image above, then see the second step in the image below.
 |
| Img 2 (by. Weihome Team) |
Have you choose the type of MA that you will use? Keep in mind again, SMA provides a lately signal and just grabbing a few pips, but will rarely give false signals. Like driving a car with a speed of 40 km / hour. Different from the EMA that provide early signals and can earn more pips, but you could potentially get more false signals. Like driving a car with a speed of 120 km / hour. If you drive a car 40 km / h, will be long reaching your destination, but safe. Meanwhile, you'll save time by driving 120 km / hour, but you are probably going to hit other cars, pedestrians, or a grandmother who was crossing in the crosswalk. So, which one would you choose. My advice, consider with your psychology.
Now we begin to use the MA in your trading. For example, I will use 2 EMA with period 10 and 20. EMA 10 is yellow and EMA 20 is white. Here's how to put it in our candlestick charts. First, follow the steps on image 1, then watch the image below.
Now we begin to use the MA in your trading. For example, I will use 2 EMA with period 10 and 20. EMA 10 is yellow and EMA 20 is white. Here's how to put it in our candlestick charts. First, follow the steps on image 1, then watch the image below.
 |
| Img 3 (by. Weihome Team) |
The picture above is how to enter EMA 10 into your forex charts. Do the same thing to enter the EMA 20, but replaced the period = 20, and Style = white.
EMA 10 means that the data given by the average of 10 last candlestick. And EMA 20 means that the data given by the average of 20 last candlestick.
Now you have two EMA on the your candlestick chart. Now we begin to find the location of treasure. The Techniques to be used is the trend and the crossing. With EMA, you can easily find the ongoing trend. Pay attention! If EMA 10 is above the EMA 20, it means that the uptrend is going on. And if the EMA 10 is below EMA 20, it means that the downtrend is underway.
In addition, EMA could provide clues when we entered the market. That is the technique of moving average crossovers. Where between EMA 10 and EMA 20 meet and then pass each other. look picture below ...
 |
| Img 4 (by. Weihome Team) |
Look! The location of the treasure is so clearly visible. Sell when EMA 10 across EMA 20 downward, and Buy at EMA 10 across EMA 20 upward. Yes ... yes ... yes ... I'll be rich as soon as possible. Hey, wait ... don't forget that the risk is always there. As in other techniques, EMA has its drawbacks as well. if other techniques always give false signals, EMA will also give you false signals. Because forex is not an exact science. Once again, forex is not an exact science.
 |
| Img 5 (by. Weihome Team) |
The picture above explains that all the techniques in the world is not 100 percent profit. The way to avoid false signals are:
• experience
• Exercise on a demo and learn it.
• Combining with other indicators.
In the next article, we will discuss about the indicators that you'll use, at last you can combine with other indicators and create a system that can gives profits consistently. Do you want to? Keep stay tune guys ...
1 komentar:
GPS robot tripled the $100k deposit [live proof]
I just got done with a webinar with Mark and his partner, Antony, two days ago and it was GREAT.
During the webinar Mark and Antony shared their stories to success and answered questions about their new version of the GPS Forex Robot that CAME OUT TODAY!
Posting Komentar