Now that you understand how moving averages work, let’s take a look at how they are applied in real trading decisions.
Like moving averages, EMA’s allow you to identify trends a little earlier. They give extra weighting to the more recent move.
Like trend lines, moving averages help identify trends in the market and assist with changes in direction and trade entry.
You have got the basics discussed in the first few videos. Now combine them to to develop your trading strategy.
The use of channels can allow you to trade long and short while a market is trading in a defined channel.
Identifying trends can help avoid traders from entering trades against the trend the market is taking. The old saying goes … “the trend is your friend.”
The plotting of these lines is very easy but some common mistakes can be made. Avoiding these mistakes makes the use of support and resistance a very powerful tool in forex trading.
We go through the use of Support and Resistance Levels and how they can assist your trading. Learn how to draw them and what to look out for.
In this video, we discuss the 3 main types of charts that FOREX traders use. Line Chart, Bar Chart and Candles.