Moving average (50)

Moving average (50)

Simple Moving Average is one of the most popular and easy to use means available for technical analyst. They smooth a data series and to facilitate spot trends, something that is particularly useful in difficult markets.

Let's talk March (50). '50 'Means that the indicator uses the latest 50 days to make its average. And I use the 1H time scale in the implementation of the indicator. The moving average represents the consensus of investor expectations over the indicated period of time. If the instrument price is above its moving average, it means that current expectations that investors are higher than their average ones over the past 50 days, and that investors are more bullish on the instrument. Conversely, if the price is now below its moving average, it shows that current expectations are below the average of those in the past 50 days.

The classical interpretation of the moving average is to be used in monitoring changes in prices. Investors typically buy when the price of the instrument rises above its moving average and sell when it falls below its moving average. That's it!

Click here [http://forex-library-ma.blogspot.com] to see an example of implementation of the MA (50) of the table.

But unfortunately, all moving averages are lagging indicators and will always be "behind" the price.

But still, I use March (50) to help me to show long-term bullish trend and bearish trend. But please be very careful when you see a sideways market. Usually, using R (50) to enter the market potentially throw will make your job ended with a loss. This is the weakness of using MA indicator.