How to Read Moving Average

I will explain how to read the Moving Average of the trend, crossing and breakout. Don't miss this article if you don't understand clearly about Moving Averages.

Moving Average has 3 ways of reading, but there are those who use the Moving Average only to see the direction of the trend and there are also those who use only the Crossing method for entry. I think Moving Average is very suitable to be used to combine Support and Resistance.

This is the type and how to use Moving Average.

1. Trends

If you want to use the Moving Average to see the trend, you can use the H1 Timeframe and then set the Moving Average to a period of 480 to see which direction the trend is in for more than a month. This is very helpful because it gives a percentage of the probability for profit to increase because you already know where the price is likely to go.

2. Breakout

You can also use the breakout analysis system on the Moving Average. When you determine a Moving Average, for example the Daily Moving Average (Period 24 in H1 Timeframe) When the price closes the candle and passes the Moving Average, the Breakout analysis is valid and can determine Buy or Sell.

3. Crossing

Crossing is most widely used by beginners because it is the easiest to use. However, there are many things that go wrong when using Moving Averages. How to make sure the direction is better when crossing and the price is fixed in an area first. For example, if the green cross is red which shows the price will go up (Buy) then wait for the price to really reject to go down first.

There are 3 types of how to read Moving Average. If there is a shortage, please let me know, if it is useful, don't forget to share it with friends who want to learn trading.

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