--- title: 'This Indicator Will Help You Improve Your Day Trading Analysis' source: 'https://youtube.com/watch?v=AXRWZHKi7yM' video_id: 'AXRWZHKi7yM' date: 2026-08-12 duration_sec: 168 channel: 'Ana Tavares Trader' --- # This Indicator Will Help You Improve Your Day Trading Analysis > Source: [This Indicator Will Help You Improve Your Day Trading Analysis](https://youtube.com/watch?v=AXRWZHKi7yM) ## Summary This video explains how to set up and use moving averages (SMA and EMA) as day trading analysis tools. The presenter demonstrates the configuration process on the Vantage Markets platform and outlines four primary functions of moving averages in technical analysis. ### Key Points - **Introduction to Moving Averages** [00:03] — Moving averages are described as one of the best day trading analysis tools, calculating the average price of an asset as it moves. - **Setting Up SMA** [00:18] — Open your analysis platform or brokerage account (e.g., Vantage Markets), go to the indicators section, search for 'SMA', and insert the simple moving average. Configure the period to 20 and choose a preferred color. - **Setting Up EMA** [01:02] — Follow similar steps to add the exponential moving average (EMA), also with a period of 20, and select a different color (e.g., pink). - **Function 1: Support and Resistance** [01:32] — Moving averages act as movable support and resistance levels. The presenter emphasizes never using them in isolation but as confluence and context in analysis. - **Function 2: Identifying Trend Direction** [01:47] — Upward-sloping moving averages indicate an uptrend, while downward-sloping averages indicate a downtrend. - **Function 3: Spotting Trend Reversals** [02:01] — Crossovers of moving averages can signal potential trend reversals, as shown in an example where a downtrend shifts to an uptrend after a crossover. - **Function 4: Identifying Sideways Markets** [02:13] — When moving averages are flat or moving between candlesticks, the price tends to move sideways. - **Call to Action** [02:27] — Viewers are encouraged to comment 'averages' to receive a complete lesson on this topic. ### Conclusion Moving averages are versatile tools for day traders, offering support/resistance, trend identification, reversal signals, and sideways market detection. Proper setup and contextual use are essential for effective analysis. ## Transcript In my opinion, it's one of the best day trading analysis tools . And obviously I'm talking about the beloved moving averages, which are basically an indicator that calculates the average price of an calculates the average price of an asset as it moves. first thing you're going to do is open your analysis platform or even your brokerage account— mine is Vantage Markets—and go to the indicators section, in the search bar, type SMA. Let's insert the first average, which is the simple moving average . You can close it there, go to the indicator, double-click it, and basically it will open the configuration box. In the period field you will type 20 and then in the style field you will change it to your preferred color. I'll just leave this green one here. And now we're going to follow the same steps to insert our second average. Indicators. In the search bar, I'm now going to type EMA, which is our exponential moving average. I click on it up there , you can close it with the little x. Once that's done, double-click on the indicator. We'll also change the period to 20 in the values ​​section, We'll also change the period to 20 in the values ​​section, OK? And in terms of style, we'll change the color to another color of our preference. I always wear the color pink. Beauty? Indicator inserted. Now, Ana, what good is it to the accounts? Basically, moving averages have four main functions. Their primary function is that they can be used as movable supports and resistors. important. I will never use moving averages in isolation, but only as a confluence and context in my analysis. According to the main function, I also use averages to identify the prevailing trend at any given time. Moving averages sloping upwards, indicating a prevailing upward trend. Moving averages sloping downwards, predominantly a bearish trend. Thirdly, I can also identify a possible trend reversal. Notice that in this example, I have a market that was in a downtrend, now the averages have crossed and the market tends to continue upwards from this point on. And the fourth and final function is to identify a sideways price movement. When the moving averages are moving between the candlesticks or are more straight, the price tends to move sideways. Did you enjoy this content? Would you like to receive a complete lesson on this topic? Are there several other learn? So comment the word "averages" below and I'll send it to you right now word "averages" below and I'll send it to you right now .