.Moving average is one of the indicators used in mt4 that shows the average value f a price over a set period of time. It identify trends and reversal. Moving average do not predict new trends but confirm trends once they have been established . It can determine potential price support and its being used by many forex traders.
Moving average is good as it doesn't involves much profit and saves from loss also. Slowly and steady wins the race.
The Moving Average is the most basic technical indicator when it comes to technical analysis. It is used to identify trends, as it smooths price action into a single line. it gives basic trading signals when price crosses it. The primary benefit provided by a moving average is to reduce market "noise that make it difficult to accurately interpret real-time exchange rate data.
Do you use this indicator?...You seem knowledgeable about it.
Moving average is good indicator that can help the trader in making profitable trade. You can also combine it with other indicators to achieve good result.
Many forex traders use moving averages are used to examine trend direction in technical analysis. The main thing we enjoy about the moving averages is its use in reducing market noise or rate fluctuations which would have made it difficult to properly interpret real-time exchange rate data so that it makes smooth out the fluctuations.
In order to get strong trading Buy/Sell signal, you should use multiple indicators. The moving average can be combined with the SAR. You can make more profit if you know how to read the signals. See how you can do it here: How to use the Moving AVR and SAR
First of all, I would like to introduce my indicator EMA_MUSIC_STAVE_BY_COWBEARCAR to you all.
This indicator which uses EMA 7 20 38 62 100 to make music/staff on view.
If you good at music, you will know when to beat.
General speaking, moving average is slow and only give you advice on trend going and
support/resistance point when correction occurs.
Well, This MUSIC_STAVE is totally revolution on moving average,
It touch more and more high/low even it is far from moving average.
I use 3 calculated lines, may be you can get the idea to find better.
By formula 2H-L, we get (2*EMA4 - EMA10) (2*EMA7 - EMA20) (2*EMA7 - EMA38)
You find the calculated lines always catch each candle high/low.
Why I use MUSIC_STAVE instead of GMMA?
I try to make each height of STAVE even, and you can simple use ruler to measure for rival part.
EMA7 is one of the best MA from others, it always give the best entry point for you.
MUSIC_STAVE is a revolution from standard MA, calculated line find the best exit price you never compare with neither basic MA or GMMA.