The post How to use the moving average indicator appeared first on Baguz BusinessMedia.

]]>**What is a moving average?**

Simple indicators were created to calculate currency movements the average period of time is a moving average. This indicator will see movements of earlier and later forms a line that we can use to analyze price movements next.

**The type and the type of moving average**

in the development, moving average, there are two types namely the simple moving average and exponential moving averages.

*Simple Moving Average (SMA)*

Simple Moving Average (SMA) is the most simple MA. Yes, true to its name: simple. But don’t underestimate this simple ability, because with the proper use of it can lead you to recognize price movement.

*Exponential Moving Average (EMA)*

Calculation of EMA is not as simple as high school. EMA gave more weight in the calculation of the average price in a given period. The effect is likely to be more sensitive to the EMA price movement so that the EMA to move a little bit more aggressive than high school.

Today I want to share more and presents a tutorial on how to use the indicator moving average, not just one but two moving average moving average. This method is referred to as a moving average crossover. This may be one of the first because this indicator is the main indicator used to create the previous decade trading system. If we look at the analysis trader from 50 years ago, especially those that focus on commodities, we will see two moving averages in taking action.

This indicator was originally created for the Futures market. Many indicators that we often see used to trade stocks today were originally created for commodities and futures. Earlier in the 80s, the stock market is relatively quiet and not show too much volatility, there are no short-term traders to create the volatility we have seen in the forex market today. Commodity markets are always substantially more unstable in the past. Therefore, the indicator is indispensable to help the trade we are doing.

In using them, the moving average is usually used more than one. Two moving averages used are fast moving average and the slow moving average. A cross between the two moving average is referred to as a crossover. Moving Average Crossover uses two different time frames. The first frame is 90 days and the second time frame is 14 days. I find that using a combination of the two in this time frame produces a good mix between a short-term time frame and long-term time frame. Another reason why I use the 90-day period because it consistently produces the best results of all time frames that have been tested.

You must use the moving average indicator on the right conditions, for the satisfactory results. This is where the biggest problem arises. Most traders don’t use two moving average on the right market environment. I have seen many times when merchants use the moving average when a flat market and trends for less. I have seen, many traders use these indicators when the markets were deserted. This is not one of the functions of establishing these indicators. If we use them when market conditions are wrong, we will never realize the actual benefits of the tools of the trade.

The best time and the only time it is good to use a moving average crossover. It’s a particular stock, or other market has been saturated, reverses direction and had already begun to fall back. Let me show you some basic examples so that we can get how to use the indicator moving average.

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]]>The post Learn how to use the MACD indicator appeared first on Baguz BusinessMedia.

]]>**The MACD Indicator**

When using the MACD Indicator, we will usually see three numbers that are used for setting it up.

- The first is the number of periods used to calculate the moving average.
- Second is the number of periods used in the slow moving average.
- And the third is the number of bars is used to calculate the moving average of the difference between the average move faster and slower.

For example, if you see “12, 26, 9,” as the MACD parameter (usually the default setting for most chart), this is how you will interpret it:

- The number 12 represented the previous 12 bars of fast moving average
- The figure represents 26 of the previous 26 bars of slow moving average
- Figure 9 represents the 9 bar before the difference between two moving averages.

Well, now we’ve found out what are known as indicator MACD. Now we’ll see what we can do with the MACD indicator.

There are 4 signal MACD which we will explore in this article and explain step by step how to use the MACD indicator to determine the position in forex trading.

Because there are two moving averages with the “speed” of a different, faster will clearly be more quickly react to price movements than slower. When a new trend going on, the lines are quick to react first and eventually pass more slowly. This is called a “Crossover”, and a fast moving average starts “crossed” or away from the lines of slow moving average, often indicates that a new trend has developed. Since the MACD is based on moving average, is ideal for analyzing price momentum, finding entries follow the trend and then close a position when a trend has begun to saturate. MACD crossovers included in how to use the MACD indicator is most readily applicable. Because intersecting (crossover) between two Moving averages are very easy to find.

The line MA is a red line MACD is based on 12 and 26 moving average. We can also see that our analysis focused on the two moving average on graphs and when to Moving Average MACD line began cutting 0. As I said before, the MACD line is similar to the system moving average crossover and ma cut a line of 0 means show that the MACD trend already unconfirmed.

As we know from the article moving average crosses, 2 MA indicates a change in a trend and often presaged the creation of new trends. So, every time the MACD Line crosses 0, it shows that the momentum is changing and a potentially new trend is being established.

The image below shows another classic example of how to analyze using the MACD to predict prices. The timeline of the trend line is penetrated. When moving averages to zero over the line to the downside, a new downtrend begins. in addition, the candle is also penetrating the line of the trend line. While this is a good moment to do sell open positions. Due to the breakout trends downward and the macd crosses the zero line towards the negative area is an indication of a pretty strong downtrend.

MACD divergence is another way to analyze the price and find the position of a trade. You can see in the picture below how prices move higher and very slowly over a long period of time. In addition, at the same time, the MACD moving shows lower figures. This means that there is no purchasing power again. Then, suddenly, the price broke below the two fast-moving average MACD line and also crosses under 0 gives a short entry to do the sell entries. As long as the MACD is on the numbers below 0 and it allows us to sell only.

**The Conclusion:**

An indicator is a tool of the great trade that offers objective and easy to interpret the information. In the case of the MACD indicator is ideal when it comes to analyzing the momentum and also find new trends. Overall, like most indicators, we might just find a wrong analysis when viewing a graph using the MACD indicator movement. But please be aware that by learn how to use the MACD indicator. It’s likely to win the competition in the currency market is very big.

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