You can adjust your time-frame selection according to your trading plan, for example, 5 (1 week), 60 (3 months), and 120 (6 months) periods. This indicator results in forming an average price line for a certain period. This indicator also helps clarify prices by eliminating price fluctuations that may be less relevant, all based on past price calculations. The moving average is a statistical indicator based on the price action of an instrument where the purpose of the moving average is to find out the price movement in a certain period and to know the support and resistance limits of an asset. If the price moves up (uptrend), then the MA curve will move up as well, and otherwise, if the price goes down (downtrend), the MA curve will move downwards. That’s because the MA is the simplest indicator among other technical indicators. Moving averages can be a powerful indicator if you can use them properly.
200 ema vs 200 ma professional#
The indicator is a moving average this indicator is a primary indicator widely used by many traders, from beginner to professional traders.īefore you know what exponential moving averages are, you should first know the basics of moving averages. There are still some basic indicators that a beginner must know at the beginning of his trading journey because these indicators are primary indicators that even professional traders use.
You also have to combine various price action analyses instead of relying on indicators alone.
It is not uncommon for a beginner who is still new to the world of trading to find the most “profitable” indicator for him to use when trading.īut there is no such indicator because what you get is according to your knowledge. 6 Conclusion Of Who Is The Best Between MA Vs EMA Getting To Know Moving Averagesįor those of you who have just been in the world of investing or trading, you must learn about basic things such as trends, candlestick patterns, chart patterns, support and resistance, and indicators.