Learn arithmetic averages were released
Moving Average :
Introduction:
Moving Average mean arithmetic mean wheelchair is the basis for many of the indicators, helps to know the direction of the market through the mathematical formula of digital analysis.
And is one of the oldest and most technical analysis techniques,and used mainly as a tool to chase the trend.
Definition :
it is one of the indicators of the Direction (Trend), and is a tool calculates the average of the movement for a certain period of time to determine the direction of the price of the original through more than equivalent to its own, is not expected price trend but determines the direction of the current price and previous data, showcases a precedent, it is a price that is befoer price, but we can conclude the movement coming from its interaction with the price.
Types: there
are many different from each other in a manner calculated the equation and its simplicity whenever Zada simplicity say strongly affected the price movement, it would be the last according to the type from your interlocutors, the most widely used and common with how to calculate the equation of each type to learn any kind fits your circulation:
1) Average simple movement Simple: is the total number of closures, the number of those closures)) we have a simple arithmetic average of this movement, it symbolizes (SMA), was named after simple simplicity of his account, the CHARTING is more fluid movement mechanism, staying within the trend features the largest possible period can actually achieve high rates of the objectives of the method, the traits that gives signals late because it is slow.
2) The Average Exponential Expoential Movement:
Is } (the last closure - the arithmetic average former sorrow) * multiplier { arithmetic average of grief.
To know the MULTIPLIER account: (1) the time period 2.
Symbolizes (EMA), be charting is more than bare the mechanism of his movement, created to be more speed from the simple to give faster price signals by interacting with modern and this is what distinguishes it, and it is in the development of the simple average (slow), the traits that might give hasty signals are false .
Ways to take advantage of:
1) determine the direction: if the price was above the average this often refers to the upward trend can actually buy at the price of touching the line above, if the price was below the average this often refers to a decreasing trend can actually sell at the price of touching the line below, the Image Caption:
note the highest average price then observed touching and then follow-up, blue squares are points of purchase.
Months averages that are used for this purpose 55,100,200
2) FRACTURE: When the price break average line to close the green candle and then the emergence of green above the candle be a buy signal, and an indication that the sale be has broken down the average line to close the red candle and then the emergence of red candle beneath it here be a signal to the sale, the following picture is an example of buy this way:
blue square is the reference monkey (CANDLE closes above the average green break), the Blue Box ii is the second signal (green candle composed over the Mediterranean) therefore entering will be purchased at the level of the horizontal line blue.
Months averages that are used for this purpose 20, 50 and 89, 150 and 200
3) The Intersection: put the simple average of the averages (slow) with sorrow (Fast) when cutting highway slow up (Buy), when the rapid decline of slow (sell), representing the following image is an example of buy this way:
Blue Line was the average grief and red line simple average, he noted the INTERSECTION of the brokers at the blue arrow up from the simple transfer of grief after that was lower than which gives us procurement areas represented by the Blue rectangle.
The most famous of the averages used for this purpose is (5, 20) and (10, 50).
-- There are many ways to take advantage of this indicator, but reminded us of the basics of benefit and you can develop these basics commensurate with the method of tradeing, and do not forget to make the Mediterranean is a tool to confirm that the resolution.
Technical Note: The
arithmetic average for 200 day is a very effective tool to confirm just think that whatever food you trande, the change in the trend, the price to be direction.
