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Monday, April 16, 2012

Moving Average

How to use Moving Average (MA) effectively in investing/trading:

For Stock/ETF Index Investing

Using MA50 and MA150 to identify the trends
1. If MA50 is crossing over MA150 and it is moving upwards - time to entry
2. If MA50 is crossing over MA150 and it is moving downwards - time to exit

For Forex Trading

Using EMA5, EMA20, and EMA50
1. EMA5 crosses above the EMA20
2. EMA20 crosses above the EMA50
3. EMA 20 is at least 30 pips (1 pip = 0.01%) above the EMA50