Moving averages work best when you have some level of confidence that the underlying price will increase or decrease. As moving averages require a certain level of accuracy to work with, we recommend these as one option, alongside other techniques. (Also, these are not the same moving averages as you see in the stock ticker symbols in your account.)
1. Move average (MA)
This form of moving average is used to compare prices and trends. MA is most commonly used as a trade indicator to indicate your position in multiple areas of market activity. When traders begin moving averages on prices, they often find this form to be most useful. The key is to use MA to help make small price steps and use this form of moving average to identify price fluctuations that you may have missed, such as a downtrend. This tool is a great first move indicator that takes a longer view of a market.
2. Moving Average Conditional (MACC)
The MCC, which is the term for the median moving average, is one of the most used moving average formulas in research and in day trading. Moving average mixtures and mixtures of specific moving averages can be used to help gauge the behavior of the overall market. The MCC function in a stock’s market chart provides a useful guide to the level of price movement. When the MCCs move lower, you may see an indication of strong volume, which usually indicates that price is increasing. MCCs can also provide a reference point to help the investor determine the relative risk of their trading. A moving average of 0.25 or 0.50 means you would be willing to pay a 1/2 or 1/10 of the total of the S&P 500, or to take an extremely small risk to acquire some extra shares on a stock.
3. Moving Average Variance (MAVR)
The MAVR is a moving average based on a range of other data points. The MAVR can use a range of different data elements such as: price, market-moving averages and candlestick charts, and it can also be made by using a weighted average, or a moving average that takes a weighted mean of the other moving averages. This allows for the MAVR to tell if price is going upward or downward, even when the market is in one large uptrend or a small downtrend. This metric is one of the most common indicators in stock market research because it is extremely valuable because it is so useful and versatile. It
swing trading vs day trading forex, definition swing trading, top 5 swing trading books, technitrader learning center, swing trading software signals magazine