-->

MarCo Moving Averages Trading Indicator | Power & The Secrets of the Moving Averages | DOWNLOAD NOW

I'm going to introduce you to the MarCo Moving Averages' strength and mysteries. What you believe you know about Moving Averages is most certainly incorrect.

The majority of people that use them do so incorrectly!

Moving averages are extremely useful tools that may supply you with a plethora of data. They can inform you of:

  • What is the trend's current direction?
  • Determine long-term, medium-term, and short-term trends.
  • What direction you should trade in.
  • Where there is a decent mix of support and opposition.
  • Provide you with entry signals.
  • Provide you with exit signals.
  • Recognize sideways markets.
The problem is that most traders misuse Moving Averages. The prevailing belief is that you use two moving averages and trade when they cross each other. This is a possibility, but it is critical to use the proper type of averages with the right settings.

Moving Average Types

1. Simple (SMA)
2. Exponential (EMA)
3. Smoothed (SMMA)
4. Linear Weighted (LWMA)
5. Hull (HMA)
6. Triangular (TMA)
7. Double Exponential (DEMA)
8. Triple Exponential (TEMA)

Moving Averages can be applied to different parts of the market price. For each candle (bar), the Moving Average can be calculated using the:-
1. Close
2. Open
3. High
4. Low

Because of MetaTrader's programming capabilities, imaginative hackers have created hundreds of versions of Moving Averages.

The Simple Moving Average (or SMA) and the Exponential Moving Average (or EMA) are the two most often utilised Moving Averages (or the EMA).

Moving averages can be used as a single indicator on the chart, or they can be paired, tripled, or coupled with dozens of other indicators.

The difference between an EMA and a SMA is seen below. The Moving Average in the chart is my own custom version, the MarCo-MA2Color. When it slopes upward, it is green; when it slopes downward, it is red. I'd like to present you with this indicator.

When the price is higher than the 50-day moving average, the trend is up, and we only look for long trades. (When the price closes above the MarCo moving average indicator, it turns bright green.)

When the price falls below the 50-day moving average, the trend is downward, and we only look for short bets. (When the price closes below the MarCo moving average, the indicator becomes red.)
The price cross is not commonly utilised as a buy or sell indication. Instead, it is used to determine the direction in which we should look to place trades. When the price goes over the 50-day moving average, we begin looking for long trades. When the price falls below the 50-day moving average, we begin looking for sell transactions.

I've created a custom crossover indicator for you that makes the crossovers more visible and offers you a clear picture of the trend.
This is known as the MarCo-ColorCrossover indication, and I want you to have it.

The EMAs are shown in the graphic below Image
EMA = 3
EMA = 8


Exit SIGNAL
Moving Average crossovers work well as both exit and entry signals.
The identical EMA settings used to begin a trade can also be utilised to exit a transaction.
When the Moving Averages cross upwards to indicate a long trade, the exit is when the Moving Averages cross downward.

When the Moving Averages cross downwards to indicate a short trade, the exit is when the Moving Averages cross upwards.


Sideways Markets
When the market is heading in the direction we all want it to, it's fun to trade; but, there are occasions when the market moves sideways and becomes too hazardous to trade.

For many traders, bumpy market circumstances are a nightmare, but a Moving Average can assist us detect when the market is flat, choppy, or sideways.

We're going to use the MarCo-ColorCrossover to create a trading system.
It will be known as MATS1 (Moving Average Trading System version 1)
The MarCo-ColorCorssover indication will be used twice. This is how it will look:


LONG RULES
Step 1. The 8/34 ColorCrossover must be green.
Step 2. The 3/8 ColorCrossover must be red.
Step 3. Enter a long trade when the candle closes and it turns the 3/8 ColorCrossover green.
Step 4. Stop Loss goes under the recent swing low.
Step 5. Close the trade when the 3/8 ColorCrossover turns red. (Alternatively, you can choose to place a 1:1 Profit Target.)


SHORT RULES
Step 1. The 8/34 ColorCrossover must be red.
Step 2. The 3/8 ColorCrossover must be green.
Step 3. Enter a short trade when candle closes and it turns the 3/8 ColorCrossover red.
Step 4. Stop Loss goes above the recent swing high.
Step 5. Close the trade when the 3/8 ColorCrossover turns green. (Alternatively, you can choose to place a 1:1 Profit Target.)

Moving Average Trading System 2
We'll use the MarCo-ColorCrossover and the MarCo-MA2Color to create a trading system.
It will be known as MATS2 (Moving Average Trading System version 2)
This is how it will look:


LONG RULES
Step 1. The 50 SMA must be green. The 12/26 EMAs must be above the 50 SMA and also be green.
Step 2. The 12 EMA turns red.
Step 3. Enter long trade when candle closes and it turns the 12 EMA green.
Step 4. Stop Loss goes under the recent swing low.
Step 5. Close the trade when the 12 EMA turns red. (Alternatively, you can choose to place a 1:1 Profit Target.)

SHORT RULES
Step 1. The 50 SMA must be red. The 12/26 EMAs must be below the 50 SMA and also be red.
Step 2. The 12 EMA turns green.
Step 3. Enter short trade when candle closes and it turns the 12 EMA red.
Step 4. Stop Loss goes above the recent swing high.
Step 5. Close the trade when the 12 EMA turns green. (Alternatively, you can choose to place a 1:1 Profit Target.)


Moving averages are powerful tools when used correctly. And, as you can see, we can construct a comprehensive trading strategy using only Moving Averages.
We've discovered:
  • Longer period Moving Averages are used to determine trend direction.
  • a longer time Moving averages can be used to provide support and resistance.
  • Trade in the trend's direction.
  • Moving averages with shorter periods for entry signals.
  • For exits, utilise the same Moving Averages as you used for entrances.
  • To determine a no-trade flat or sideways market, use the moving average.
Most trading techniques are either directly or loosely based on Moving Averages. Some of the most widely used indicators, such as the MACD, are solely dependent on MAs.
Make the most of them. Moving averages can be a valuable tool once you understand how to use them.

Download

Post a Comment

0 Comments

100% FREE πŸ‘‡πŸ‘‡πŸ‘‡πŸ‘‡πŸ‘‡πŸ‘‡ CLICK HERE

Join Telegram Channel

Join bestmt4indicators.in Download Mt4 Indicators 100% Free

Join Telegram Channel