Setting up 200 Moving Averages.

[antosco]

Dear

It depends on your performance only

For example, there earns 1% to 2% and sometimes 5% on the day

But most of them are professional traders

The most important thing is practice, of course, after Forex Education

Preferably not less than 6 months

With time you will learn how to adapt to the market and choosing the right strategy

Prefer to monitor your performance

You are correct, we need to keep practicing on demo account until we have enough trading experience to start trading live account with minimum risk. Forex trading is an interesting and profitable business that we can go into if we would give it time.

[abbey ak]

thanks very much for your kind explanation with a clear picture i know this will surely go a very long way in the forex market, so i will like to know if this moving average can be in in trading the gold and silver pair i just wait to hear from you before i invest on the gold and silver pair because i make use of the moving average

[fiztrd]

its ... if you are looking 200 ma ... it will help you analyse the trend ...
but i would say trading on trends is a goo approach .. but using this alone is not going to help you ...
so i would suggest you ... that tehre are lots of combinations of these indicators .. that show you waht is hapening in the market ..
so i would say that go for such a strategy .. and make some good profits

[goldenmember]

If you want to use a moving average then you need to find uot how it fits into your trading. You need to look at lots of different ways of putting them in on different timeframes. Only then can you find if one suits you.

[mostufa]

Some of the primary functions of a moving average are to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. In this section we will point out how different time periods can monitor momentum and how moving averages can be beneficial in setting stop-losses. Furthermore, we will address some of the capabilities and limitations of moving averages that one should consider when using them as part of a trading routine.

Trend
Identifying trends is one of the key functions of moving averages, which are used by most traders who seek to "make the trend their friend". Moving averages are lagging indicators, which means that they do not predict new trends, but confirm trends once they have been established. As you can see in Figure 1, a stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average. This simple rule can help ensure that the trend works in the traders' favor.

[kecik6422]

Please I would like to know how to set the 200 Moving Average correctly. In applying moving averages, which is the best to use: simple, exponential, smoothed or linear weighted?

And also, should it be applied to high, low, close, open? Please expert traders share your experience with 200 moving average. Thanks

hi my friend,to waiting 200 moving average give a signal are to long,here my advice to you with my chart also,just used exponential MA and setting the number to 62 and apply to close,from my chart you can see this MA can be resistance or support also at 1h timeframe

[antosco]

It is very difficult to get 200pips facilities in a day . Because Forex market can not move every day in such , again market is not positive such for a trader , so if a trader can be use such he can be earn huge amount of profit , what he doesn't expect , he can not be use for every day , some time he can be face with loss with about 200pips, so it should be care about the moving, because this is such profitable , such risk able.

@5starsabuj I didn't ask for 200 pips on a daily basis what I asked for is how one can correctly use the moving average indicator efficiently by using the 200 MA in a way that it would yield higher profit. I learned that it can be used to determine change in trend.

[abbey ak]

well i make use of moving average but i don't know much about the 200 moving average well if only you can give more information with a clear picture that i think will surely go a very long way , i just hope you get this and get back to me as soon as you can because i don't think i can ever trade without moving average

[esif]

And also, should it be applied to high, low, close, open? Please expert traders share your experience with 200 moving average. Thanks

About averages i will say the that it is reliable indicator of trend but the problem with averages is that it is lagging indicator, and you can only use to confirm the uptrend and downtrend strength, and for trend reversal you should use some more indicator.

[gkintl]

Drag or click the moving average in the indicator list. Once you see the MA, double click on it for a pop up box. Use tab to get into the parameters column. Enter 200 in the input. save and exit. Now you will see 200 day MA. You can also use other forms of MA as well. The main reason to select other forms of MA (EMA, HMA etc.,) is to reduce the lag. With a 200-day EMA in place, you will get a buy/sell signal approximately 30-40 ticks before SMA on a chart. If you wish to identify reversals, use HMA (hull moving average) where the lag is almost nil. Always use the 'close'. Only those who use multiple indicators with complex algorithms prefer open or high for their MA.