Moving Average
You can use a moving average for support and resistance, so when the chart pattern will break the upper moving average then that will be the support for the chart pattern.
If the chart pattern is testing the upper moving average and its bounces back again and again then that moving average will be your Resistance.
You can use moving averages for daily trading plus Swing trades there are different strategies for both.
Moving average lengths of 10, 20, 50, 100, and 200 are common. Depending on the investor's timeframe, these lengths may be applied to any chart's time frame (five minutes, daily, weekly, etc.).
The "lookback period," also known as the time frame or duration of a moving average, can have a significant impact on its effectiveness.
A Moving Average with a short time frame reacts to price fluctuations considerably faster than an MA with a large look-back period. The 20-day moving average closely reflects the real price in the graph below, but the 100-day moving average does not.
When moving averages will cross each other than you can buy and sell your trades.
You can use a moving average for support and resistance, so when the chart pattern will break the upper moving average then that will be the support for the chart pattern.
If the chart pattern is testing the upper moving average and its bounces back again and again then that moving average will be your Resistance.
You can use moving averages for daily trading plus Swing trades there are different strategies for both.
Moving average lengths of 10, 20, 50, 100, and 200 are common. Depending on the investor's timeframe, these lengths may be applied to any chart's time frame (five minutes, daily, weekly, etc.).
The "lookback period," also known as the time frame or duration of a moving average, can have a significant impact on its effectiveness.
A Moving Average with a short time frame reacts to price fluctuations considerably faster than an MA with a large look-back period. The 20-day moving average closely reflects the real price in the graph below, but the 100-day moving average does not.
When moving averages will cross each other than you can buy and sell your trades.