facebook How to use Moving Average in Meta Trader for investing and trading? - Online Commodity trading

Moving Average takes the average of the daily closing prices for a particular period such as thirty days or ten days. It works well in trending market and works poorly in consolidated markets because it may give many false signals.

Investing: One year and more

For investing also, we can use technical analysis and the Moving Average. We can use it to find the buying and selling opportunities in investments.

Buy Signal => When 50 days’ Simple Moving Average crosses above 200 days’ Simple Moving Average.
Sell Signal => When 200 days’ Simple Moving Average crosses below 50 days’ Simple Moving Average.

We may use this technique on the daily chart.

Investing: One year and more

Trading: Medium term, One week to a month

For trading in medium term also we may use the Moving Average in Daily Chart.

Buy Signal => When five days’ Simple Moving Average crosses above 22 days’ Simple Moving Average.
Sell Signal => When 22 days’ Simple Moving Average crosses below five days’ Simple Moving Average.

Trading-Medium-term

Trading: Short term, One day to Five days.

We can also use the Moving Average for trading for one day to five days. In this case, we will have to use the Hourly Chart which is clearer and gives sharp signals when compared to the Daily Charts. We can use the crossover of 5 hours and 25 hours for the trading in the short term.

Buy Signal => When 5-period (1 hour) Simple Moving Average crosses above 25-period (1 hour) Simple Moving Average
Sell Signal => When 25-period (1 hour) Simple Moving Average crosses below 5-period (1 hour) Simple Moving Average.

Trading-Short-term

For Intraday, we have to use 15 minutes chart, and we may have to use the crossover of 4-period (15 mins) Moving Average and 24-period (15 mins) Moving Average.

We hope this will help you make the right strategic decisions while trading for better profitability. Happy Trading!