Moving average (MA) is a technique that has been used in stock markets for nearly 100 years.
The move is based on the fact that the moving averages are calculated using the value of the last trend change. Therefore for trading the last trend change is equal to the level that reached the previous trend peak. The move will then be made to reflect the value of the trend.
An example of the method is as follows:
If the last trend change was a price of $50.00
You would make a move of $50.00 (100)
If the last trend change was a price of $100.00
You would make a move of $100.00 (250).
However, for any other price, the move will be made as stated above.
Traders use the moving average of the next 20 moves to guide them through the market fluctuations and to make correct trades.
The moving averages are very similar to the Bollinger Bands which are used for trade signals. Here the moving average is calculated as a moving ratio between these two price peaks or troughs.
The difference in the moving average technique is that the moving averages are calculated to compare the price changes of two time points. This comparison is not made using the same moving range as would be done for the Bollinger Bands.
How does moving average use a moving average range?
To use a moving range with a moving average, it is necessary to keep the moving range below some minimum average in order that the moving average will remain positive and below the minimum value.
When calculating the moving average of the future price movements of two price peaks or troughs, you must keep the moving range below some minimum average. In other words, the move should be above the moving average.
In order to keep the moving range stable, the maximum value must be above the minimum value.
A Moving average of two peaks which are below a minimum value will always be positive with respect to the previous move of the moving range.
In order to calculate the moving average of two daily moving ranges, the first daily moving range should move above some minimum value and the second daily moving range should move below some minimum value.
Moving Averages and Bollinger Bands
Using a moving average instead of the Bollinger Bands is useful when you have a more complicated moving range.
The reason is that the moving average method is less likely
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