Add 2 Exponential moving average one is period 5 line colour green the other is period 20 line
colour red
The Moving Average Technical Indicator shows the mean instrument price value for a certain period of
time. When one calculates the moving average, one averages out the instrument price for this time period.
As the price changes, its moving average either increases, or decreases.
There are four different types of moving averages: Simple (also referred to as Arithmetic), Exponential,
Smoothed and Linear Weighted. Moving averages may be calculated for any sequential data set, including
opening and closing prices, highest and lowest prices, trading volume or any other indicators. It is often the
case when double moving averages are used.
The only thing where moving averages of different types diverge considerably from each other is when
weight coefficients, which are assigned to the latest data, are different. In case we are talking of simple
moving average, all prices of the time period in question are equal in value. Exponential and Linear
Weighted Moving Averages attach more value to the latest prices.
The most common way to interpreting the price moving average is to compare its dynamics to the price
action. When the instrument price rises above its moving average, a buy signal appears, if the price falls
below its moving average, what we have is a sell signal.
This trading system, which is based on the moving average, is not designed to provide entrance into the
market right in its lowest point, and its exit right on the peak. It allows to act according to the following
trend: to buy soon after the prices reach the bottom, and to sell soon after the prices have reached their
peak.
Moving averages may also be applied to indicators. That is where the interpretation of indicator moving
averages is similar to the interpretation of price moving averages: if the indicator rises above its moving average, that means that the ascending indicator movement is likely to continue: if the indicator falls below
its moving average, this means that it is likely to continue going downward.
1) Add indicator Macd: settings - 12-26-9
2) Add Parabolic SAR: settings -accelerate 0.020 - maximum 2.0
3) Add Bollinger Bands: setting - MA Type simple period 20 multiple 2.0
4) Add 2 Exponential moving average one is period 5 line colour green the other is period 20 line
colour red
5) Aroon: settings – Period 20
6) Zoom in on chart also to make it east to read 125% on marketiva
