technical trading Archives • Futures Day Trading Strategies

Posts Tagged Under: technical trading

5 Reasons to Use Moving Averages in Your Trading

 

Moving averages are among the most popular and widely used technical tools in trading. Here are 5 reasons why moving averages add a lot of value to your trading and help you make sense of your charts.

1: Direction of the trend and reading market sentiment

This is probably the most common use for moving averages. When the moving average is pointing up and price is above the moving average, it indicates an uptrend – and vice versa. Furthermore, moving averages can be used to gauge overall market sentiment. When the majority of stocks are trading above their moving average, it signals a healthy and bullish environment.

The 4 most commonly used moving averages are:

200 Period Moving Average | Very long term moving average and even the financial media and authoritative finance sites frequently talk about prices approaching the 200 period moving average.

100 Moving Average | Medium term moving average.

50 Moving Average |

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Is Trading Futures All Mathematical and Technical?

 

There is no typical retail trader and everyone is just trying to fight his way through the noise with the goal to succeed in this business and make a living, or even more, from it. Trading futures is unique and very different from most other professions and success in one area of your life will not necessarily translate into good trading. In trading, it is not the smartest person who comes out ahead, but the one who can connect the dots and deal with the untypical facets of trading best.

There is no one size fits all when it comes to trading

Everyone approaches trading education from an angle that he feels is most comfortable for him/her and that also matches his character traits and personality. Some approach it from the traditional, purely technical analysis standpoint, some follow a more statistical and math based approach, and others prefer to create and code

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