Thinking
of trading in a trending environment? Try using moving averages!
Lessons on Moving Averages
1.
Silky Smooth Moving Averages
A moving
average is simply a way to smooth out price action over time. Here's what it
looks like.
2.
Simple Moving Averages
These are
calculated by adding up the last "X" period's closing prices and then
dividing it by X. Confused? Don't worry, we'll make it crystal clear.
3.
Exponential Moving Average
Think an
SMA is too easy breezy for you? Try your hand at using EMAs!
4.
SMA vs. EMA
How does
an SMA differ from an EMA? It's pretty simple, actually.
5.
Using Moving Averages
One sweet
way to use moving averages is to determine trends. And that's just the
beginning!
6.
Moving Average Crossover Trading
If MA
lines cross over one another, it may signal that the trend is about to change
soon.
7.
Dynamic Support and Resistance
Another
way to use moving averages is to use them as non-traditional support and
resistance levels. Here's how:
8.
Summary: Moving Averages
You may forget your name, but you should never forget the basics of
moving averages