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Moving Averages: Basic Logic and Calculation

Topics: Trading Strategies > Technical Analysis      

Moving average: probably the most widely used technical indicator Moving averages are among the most widely used technical indicators. I would even say moving average is the most widely used technical indicator, though no one can really know and count this. Moving averages enjoy this privilege thanks to their simplicity, both in calculation (or setup … Read more


MACD Crossovers: Trend Following Ways to Trade MACD

Topics: Trading Strategies > Technical Analysis      

All MACD lines and their crossing On a typical chart the MACD shows two lines (the MACD line and the Signal line), as well as the zero line. They cross each other often enough to give us plenty of options for building various MACD crossover trend following strategies. Some of them are the classics of … Read more


Cut Profits Short and Ride Losses

Another popular trading rule There are many short little pieces of popular trading wisdom. Many of them have their origin in trend following – a trading style based on catching long trends and riding them to the very end. One of these often quoted trading rules is “Cut your losses short and let your winners … Read more


Moving Averages: Choosing the Right Period Length

Topics: Trading Strategies > Technical Analysis      

There is no perfect moving average Like there is no “right” way to do many things in finance and trading, there is also no “right” moving average period. Advantages of faster moving averages Most people who like trading are naturally attracted to tools that seem to work faster and show more action. That’s why we … Read more


Trend Is Your Friend. But Sometimes It’s Enemy.

Trend is your friend, so they say If you have looked for some trading advice in books or on the internet, you have probably come across the phrase “Trend is your friend”. This is one of the most widely accepted (and most widely reproduced) pieces of trading wisdom. Its core idea is that (in the … Read more