Trading with Indicators: Moving Average Strategies for Beginners

[00:02] This indicator is universal. It is used by everyone from young to old, from large participants, fund managers to ordinary newbies. It shows the average price perfectly and at the same time gives good entry points. Most importantly,

[00:16] this indicator allows you to get involved in investing and trading, even without having the basic foundations. It will allow you to analyze the market well at the initial stage and not lose a lot of money. Today you will learn what a

[00:31] moving average is and how to apply a moving average. I will also give basic strategies based on moving average. I will also show examples on the chart. We will trade together, and you will learn everything about this indicator. What is

[00:46] the essence of a moving average? Even from the name, you already understand that this is an average price. So, the moving average shows the average price over a certain period of time. Imagine this picture. You

[00:58] her and ask: "Well, how much are the apples there?" She won't tell you any some person there. She will tell you the average market price. Well, he'll say: "Well,

[01:10] apples there are 70 rubles a clog, for example." Yes. But in these same 70 rubles. There is one who sells for 69, and one who sells for 80, that is, all together. This is a common

[01:22] example of a moving average. Essentially, a moving average will allow you to know the price over a certain period of time. This means you can receive different information from different timeframes on one timeframe. In addition, you will

[01:36] be able to understand whether the current price is high or low relative to average prices , meaning whether the markets are overheated or, conversely, oversold. Just like with apples. Knowing the average price of 70

[01:49] rubles. If someone sells apples for 100 rubles, you will say that this is more than the market price. And if someone sells them for 60 rubles, you will say that this is cheaper than the market price. A moving average is available in any trading terminal. You can open

[02:03] any, that is, and therefore you do not need to pay for access to the moving average, because it is available in absolutely every terminal. I'm showing it in the different one. To do this, you need to click on the indicators. After that, click on the

[02:17] moving average. We are interested in the exponential moving average. Here, as you can see, there are least squares. Triple exponential smoothing, triple exponential. These are just calculation formulas. In a regular

[02:29] moving average, we simply have the average price over a certain period of time. An exponential moving average places more weight on current prices and less weight on previous prices. That is, they will have less weight.

[02:44] This is important. By clicking on the gear, you will be taken to the settings. And here you can choose the length. Length is the period of the moving average. If I set, for example, a period of 200 and click OK, then my moving average will show the average

[02:59] price for 200 candles. Here I have a five-minute time frame open, which means that for 200 candles of the five-minute time frame I will get a moving average in the form of a line like this on the chart. If I switch to, for example, an hourly chart, the moving

[03:13] average will be recalculated for the hourly chart. Now I will see the average price for 200 hours. If you don't like the color or the display, you can always go to the style and in TradingQ select any line of

[03:26] any color, make it thicker or, conversely, a little thinner. This allows you to differentiate between moving averages that you have set for different periods. If the moving average is approximately in a sideways movement, the

[03:38] market is flat, that is, the market is approximately in a sideways movement. If the moving average is rising, then you are in a trend. If the moving average is falling, then you are also in a trend. This way, using the

[03:51] moving average, you can determine approximately what is happening on the chart. That is, in the market we have either a trend or a flat. A little further we will talk about trading entry and exit points, and how to use all of this in your trading.

[04:04] Looking ahead, I will say a little that the moving average works exclusively in trending areas of the market. If you pay attention, here the market seems to not respect this moving average, it doesn’t see it at all. No bounces,

[04:18] no reversals from it, except for some random events, like here. And this is no coincidence, because this is a side section of the market. On the contrary, this is the case in trending areas of the market. And in trending areas of

[04:30] the market, the moving average provides a good opportunity for good entry points. Friends, trading and investing are, of course, more about practice, so please scan this QR code. It will redirect you to my

[04:44] Telegram channel. We won't be selling any VIPs, signals, or other magnifying glass there, which we've already had enough of. We will tell you exactly what to do, how to understand the market, what to look for. And, most importantly, I will

[04:58] show it with my trades. Please subscribe to my Telegram channel using this QR code. The first way to use a moving average. We can use it to see what is happening with average

[05:11] prices over a long time frame. In this case, I have the watch open. If I want to understand what is happening on a high time interval, to understand approximately, I need a moving average with a period of

[05:26] 24, that is, there are 24 hours in a day. And with the help of this line I will understand what is happening on the chart, on the daily chart, that is, on the daily one. If I need to know what's happening on the weekly chart, I

[05:40] need to add a moving average, but with a period of 168. There are with a period of 168. There are 168 hours in a week, and accordingly, the average will show me the average prices for the week. What does this give us?

[05:54] This gives us banal convenience. This means we don't need to switch timeframes. We can see all the information on one timeframe . This means that we can use one time frame to determine what is happening on other time frames and

[06:07] make a trading decision. This method is often used in the West for some reason in some investment companies, well, old school ones, so to speak, yes. For some reason, in Russia I haven’t seen anyone using this in

[06:20] to say, I have practically never seen anything like this anywhere. But in the West this is just the case all the time . It's just constantly used. Personally, I prefer to open a high time interval and watch with my eyes. I can't say that this is

[06:33] better or worse. Rather, it’s more a conversation about convenience. Now your favorite. How to use moving average? In general, there are three such global ways to use this. Firstly, this is a rebound of the

[06:46] moving average. That is, when the price bounces off the moving average. I'll show you examples, of course. The second method is on a breakout and rollback from the moving average. And the third is when the moving averages cross. An important

[07:00] point is the period of moving averages. All these strategies are applied over a specific trading period. These periods, this length, it’s kind of, you know, universal, or something. And for this reason, this needs to be kept in mind. That is,

[07:15] ideally, if you select a sub-market depending on the financial market in which you trade. If you have a market, it tends to be volatile, longer the moving average length, the better. If it is an average volatility,

[07:30] or closer to low volatility, for example, it is a currency or, for example, it is a stock, then in this case, too large a moving average will give need this. You came here to make money, so you need to choose something

[07:45] examples, you can, in principle, use them. If we're talking about lights out, let's go from right to left. Rebound from the moving average. In this case, a moving average. In this case, a

[07:59] 200-period moving average. The length is set to 200. We see that our moving average is moving downwards, and the price has broken through the moving average from top to bottom. entry point to sell. To find an entry point for a sell, we can enter

[08:16] right at the breakout of the moving average, that is, when the price breaks from top to bottom, and then you will have a trade with increased risk. Why? Because there is a possibility of a rebound. We won't know in advance what's going on, right? This is what

[08:30] . I prefer to take other trades when the price hits the trades when the price hits the moving average and rolls back to it from the opposite side, that is, here. And here we can already look for some

[08:43] entry point. Some entry point always occurs through a reversal pattern. A reversal pattern is a series of small candles, like this one, followed by momentum, in my case for a bearish example down. That is, you

[08:59] should have compression on one side and decompression on the other side. It’s not because I’m making it up and not because, you know, this is the rule, because this is how the market mechanics work, supply and demand. If you watch my

[09:11] lecture on market mechanics, it's in the free course "Start Trading Without Deception," which is available via this QR code, you'll understand that this isn't just a science, that there's a squeeze going on here, a shaking up of certain

[09:26] principles, that this is how it should work, because otherwise the market doesn't work. We should have a lot of capital here for the downward movement. That is, we seller on one side, and on the other side we must have a powerful

[09:41] sales, so that there is movement, so that market participants who bought here, who bought here, exit their unprofitable positions. And that's why we need decompression. Watch a

[09:53] lecture on market mechanics and you'll understand how it all works. Here we have a downward expansion happening. That is, we have a downward movement happening. Immediately after this, we enter into a sale, be sure to set a stop-loss and

[10:07] take-profit twice as large. We see that our price is going down. We almost reached take profit and started to turn around. We see how a downward movement is forming here , a downward trend movement. And we see how we were fulfilled at take

[10:21] profit. Of course, in some cases you will receive a stop order. This is why we set this very same one-hundred-order. That is, the market will not always go down. The market doesn't work because there is a moving average here, it will

[10:35] reverse. No, the moving average is just an indicator. It's just a way of interpreting the market, interpreting average prices. You should do the main analysis differently, of course. Here, of course, this course that

[10:48] free, will help you figure it out. The second strategy is the moving average crossover. For this we need to use two periods: a period of 200 and a period of 50. So, let's add another moving average. Let's press

[11:04] the indicators. Moving average and set the period to 50. A moving average with a short period is also called a fast moving average. A moving average with a long period is called a long moving average. This

[11:18] strategy is used as follows . When the fast moving average breaks through the slow one from top to bottom, we need to look for an entry point to sell. When the fast moving average goes from top to bottom, we look for an

[11:30] entry point to buy. The original trading strategy recommends entering immediately after a breakout. That is, if we see a breakout here, we immediately go into Here, accordingly, we need to go into purchase. But, as you probably

[11:44] noticed, we would not have entered very profitably, and we would most likely have been filled to capacity here. We would have lost money on this. Therefore, the best way is to wait for the market to test again, that is,

[11:56] return to either the fast moving average or the slow moving average. There will always be a return. This happened right here, that is, the market returned, here the market returned. And this happens almost every time. This

[12:09] way you will reduce the number of false entry points. Besides, you won't make stupid mistakes. The stupid mistake with this trading strategy is when you are in a sideways market and you are making trade after trade. That is, you

[12:24] entered a position once, but if you had entered a purchase here, you would most likely have been stopped out. Then here, if you went into sales, you would be stopped. Then you would have turned to buying and would have also received a stop order. Here you would go into a

[12:36] sale, you would freeze, and only then would you realize that you were in a side section of the market. Let me remind you that in a sideways trend we do not use a moving average. For this reason, if you receive a stop order and notice that your

[12:50] moving averages are straightening out and starting to move sideways, we immediately interpret this as a sideways market segment and stop using moving averages until the market begins a trending market segment.

[13:03] Let's look at this situation as an example. Our market is moving down. We are experiencing a breakdown. The fast moving average breaks through the slow one from top to bottom. We don’t do anything, we just follow the schedule. The movement is gaining momentum. We still

[13:18] do nothing. We are waiting for the return from the other side, that is, the test from the other side. The test hasn't happened yet, we're still waiting. And now we have a test happening from the other side. When testing from the reverse side, we can use the same

[13:32] pattern. That is, we should see either a narrowing range followed by an impulse, or simply a sharp downward impulse. That is, we must see that someone paid money for the reversal, someone must invest a lot of

[13:46] money in order for further movement to occur. So far this hasn't happened. That is, our market is starting to grow. Now we have started testing the slow downward impulse. That is, a series of small candles, a series of narrowing

[14:01] followed by a downward expansion. Here we make a short position, that is, we enter short, we set a stop order for a reversal situation. Here we have it . Take profit is twice as big. The market has once again tested the fast

[14:15] moving average, thus showing us that there will indeed be a downward movement here. And we reached our take profit. We can continue to be in a trend, we can wait for the situation to arise again

[14:29] and enter the market again. We see that we have a series of narrowing candles again. And now we need to wait for the downward jerk. And now we are starting to see a downward surge. Now let's go to the sale here. We set stops

[14:43] a little higher, take profit is twice as big. I anticipate your question. Of course, there is a possibility of getting a stop, but that is why we set a stop order. Also, if you caught some trending section of the market, the market may not reach,

[14:56] for example, your take profit. All this , of course, happens. Besides this, sometimes it happens that the trend is long enough, and you don’t necessarily have to . That is, if you understand that you are under pressure from some agenda,

[15:09] for example, news, that the market is in a bearish trend, that you entered, for example, based on an indicator, but look, and now you have some news agenda or, for example, you have a very strong pressure on the market, for example

[15:21] , some major index, of course, all this must be taken into account. And if you understand that the market will drag you even further down, you can, for example, not use take profit and control this trade, hold it, basically, until the

[15:34] next crossover. By the way , if we take a basic scenario and take a basic trading strategy, it is recommended to use precisely moving average crosses, we enter a breakout, hold this trade until the moment of

[15:50] reversal, and then reverse in the opposite direction. But practice has shown that this is not particularly effective, and that the most effective method is to use the method I just told you about. The next strategy is

[16:02] used in the West. For this we use three moving averages: 33, 100 and 200. This is called the top of the moving averages. In general, the name is quite unique. Let's make the red line 100 and add another

[16:18] moving average. Let's make the period 33 and set the style. let's make it green. Trading is generally a creative profession. Here you can choose the color of the lines, the ends, unfortunately. Everything else

[16:32] know how to trade. The thirty-third moving average shows moments of when the market accelerates, it is above the thirty moving average. The moving average flock shows you

[16:45] average prices. That is, when the market is either in a slowdown phase or at the beginning of a trend movement, it shows you rebounds. Well, the slow moving average shows a slow trend. Just like in other

[16:57] strategies, we don’t use this in a sideways market . The first way to use a moving average fan is when we have a situation where this fan appears. That is, if you look here, for example, we have a situation where the

[17:10] fan has been folded, so to speak, into one line. This means that we use it. When this very fan appears in the market , we see it with our own eyes on the chart and then we can make a decision. The second way to use it is when we have a

[17:25] case the thirty-third green one, that breaks through two moving averages at once, for example, from bottom to top. This means that we need to look for buying trades. We will look for buy trades in the rebound from the thirty-third moving

[17:39] average. So here's a little example. We have a downward movement. We have a breakout of the fast moving average and two slow moving averages. We do nothing, we just wait for the trading situation. The trading situation for us

[17:53] is a rebound from the thirty-third moving average, in this case from the green line. We are waiting for movement. Here we have a movement towards the moving average and a reversal situation appears. Everything is exactly the same. Range compression followed by

[18:06] downward expansion. You can make a sale transaction here. Stop order. We put up the same price for this model. Take profit is twice as much. I'm showing you an example now using Bitcoin. You have to understand that depending on the

[18:21] market you're trading, there's no clear, you know, pattern here. That is, depending on the market, you can make take profit larger or smaller. You see that our market has gone down. This is due purely to high volatility. I'm

[18:33] telling you the classics. You should, of course, choose the parameters for setting your tech profit yourself, depending on the market conditions you find yourself in. Just grasp the general principle. One more principle.

[18:45] general principle. One more principle. If there are two or more bounces from the fast moving average, the probability of a breakout increases. That is, if you, for example, came here, handsome, well done. But if we have a

[18:57] movement, the probability of a reversal increases, because, of course, we have a trend developing, a trend does not have infinite strength. Sooner or later these forces will run out, and we will have a full-fledged turnaround. We see that we could

[19:11] take our entry point here , and we could also take our entry point here. Now we see that we are experiencing a breakout of the moving average, and a fairly large breakout at that. And we see how

[19:25] consolidation is taking place, that is, the candles are starting to trade above the fast moving average. In a classic trading strategy, this is already a counter-trend situation, when we begin to enter into a purchase, place a stop-loss order

[19:38] behind the moving average, and set a take-profit at the next moving take profit. Now, if we break through the middle moving average, that is, the red moving average, we can do the same with it. That is,

[19:52] every time we break through one moving average, we move to another, then to a third, and so on. We also have a breakdown happening here. Here we can also enter into a purchase, and the market goes in our direction. If this were on a real

[20:05] account, most likely we would still be stopped here. The moving average is a good way to find good entry points, but you need to understand that it is certainly not a holy grail. However, for beginners, when you just

[20:17] came to the market, when you do n’t know anything about it yet, this is a good way of trading. Moreover, you have no knowledge. Well, I will help you with this, we will give you knowledge, there is no problem with that. But at the initial stage, moving

[20:32] remember that these are still crutches. Today, you know, my role is more like that of an educator, so to speak. You know, we were all taught to walk. This is roughly how they gave us something to hold onto with wheels. Well, either mom or

[20:47] dad supported us. It's the same here . That is, I gave you today a tool that will support you for the first time . Well, you won't thing all your life, of course not. But at first it's pretty good. As for everything else, I look after

[21:00] you like a parent and take care of you. If you don't want to be a child all the time and drag around this crap, waiting for support from somewhere, I will help you with this. That is, I have an entire online school. We have been

[21:14] teaching people for 10 years, even more. For almost 11 years now. In general, we have a full-fledged school; it will resolve any issue regarding finances. We offer training in investing, options, trading, crypto, scalping, anything you

[21:30] like. In fact, every question is closed. You found this video about trading, so here I am talking about a course that is dedicated to trading. It's called the Grail of Real Trading. I am leading him. In general, this is a basic, a tangled base on

[21:44] what exactly needs to be done, how it grows or falls, why it does so, what models exist, what strategies exist, how to develop your own strategy. Notice how advanced everything is. That is, there are

[21:57] chapters here, each chapter is divided into lessons, starting from some general topics, that is, what graphs look like, what commissions there are, when the exchanges work. We're very complex things, like risk management, entry points, and so

[22:12] on. Everything is collected in one place, fully structured. There is no need to look for this structure anywhere else or watch useless webinars. Each lesson is thoughtfully designed and written with the working person in mind, so that you can come home after work

[22:26] , watch one or two lessons, take a few notes, and then get on with your day. That is, each lesson lasts 7-10 minutes. And it's not just like that . In addition to the video, there is also text information and additional

[22:40] materials. In general, everything is done so that you can study all of this and begin to apply it and start earning money. We have already trained more than 40,000 students, probably. You can scan this QR code and go to the

[22:53] independent review site infit, read reviews from our students, see what they write, what kind of reviews they write, and draw the appropriate conclusions. If you like these reviews and the training program, scan this

[23:06] QR code and purchase it. Our prices are affordable, everyone can afford them. Allow yourself to become a trader. Allow yourself high earnings.