The 200 and 250 days time-frames are sometimes referred to as the “bull-bear line” and traders use them to determine whether there will be a bullish movement or bearish movementĪs you can see, it is a customisable indicator and you have the opportunity to modify its timeframes in accordance with your strategy and trading needs. 200 days, 250 days, in general, time-frames above 100 days if you want to see the long-term trend direction.30 days or 50 days MA up to a 100-day time-frame, for a mid-term trend direction.Five days, 10 days, and 20 days when determining short-term trends.Traders usually use the following time-frames: Based on the number of days represented by the MA, it can be used for identifying short-term, medium-term and long-term trading signals. Although you can find different types of moving averages indicators, the two widely used are simple moving average and exponential moving average.įrom a technical point of view, setting the moving average is rather straightforward, because all you have to do is to select the desired type of moving average and define the time-frame. Moreover, you can determine the support and resistance levels and define your entry or exit strategy as a complement with other indicators. You can use the moving average to recognise and determine potential trend directions or periods of flat market when the prices don't fluctuate. It eliminates the effects of short-term price changes, smooths out the price history accordingly and provides an overview of the average price for a specific period in the form of a single line. Moving average (MA) is a commonly used technical analysis indicator.
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