The Strategy Of Using The Moving Average Indicator - iq option strategy

So that IE moving average moving average. It means the average price of an asset in the priode given time.An example is the average price of gold in 1 day.

This Moving Average is a tool that is very much sought after used good traders are still beginners or even pros. Is the price of an asset's tend toward the average value. Arguably sellers and buyers is bordered by the average price. This indicator is the basis of the sharing of strategies and trading indicators.

What is the usefulness of Moving Avarage?

1. Determine the direction of trend

2. Determine the direction of the point of entry

The Strategy To Penetrate The MA

Penetrate the MA is a trading strategy that is used to determine the reversal of trends or the end of the movement.

How to use:

1. apply indicators MA or EMA on the graphs as described.

2. wait while the movement when the wax penetrate to the top or to the bottom line of the MA:

• When the candle closed above MA, will give the signal further movement of the ride and if so we will buy call options/ride.

• If candles are closed under MA, will give the signal further movement down and if so we'll buy options put/get down.

Bollywood Bouncing from MA

Bouncing from MA is a strategy where the wax is already moving to penetrate the line MA (Moving Average) but bounced back.

How to use:

1. apply indicators MA or EMA on the chart.

2. wait until the cadle indicates price movements touch the line MA, whereas the next candle towards the opposite direction.

3. So here we have two candles namely candle wax 1 and 2 in the figure below, the candle one is red and two-colored candles hujau.

• Wax the first move down to touch the second candle tatapi MA line moving up and closed above the line MA means indicates prices will turn (up) then we will choose the higher/call

• the first Candle moves up to touch the line MA but the second candle moving down and closed under the line MA means indicates prices will turn around (down) then we will install the lower/put.

The use of advanced

Regardless of the tricks mentioned above, there are many other ways to use the MA:

1. Crossed MA long term:

Pasanga MA line with priode 14 and then plug the lines MA one again with the priode 26

For example, if the short-term M.A. (14) penetrate MA long term (26) from below upwards and remained above average, it is a signal to the opening position and movements of the ride/call.

2. Determine the direction of the trend:

Using the basic characteristics of the MA – indicates the direction of the trend. MA clearly indicate trend direction; the more lerengnya, the stronger the steep trennya. This strategy can also be applied to building trading strategies. When MA moving up, and the price under the MA, this indicates a trend going up and our target is to find the entry point with direction to the top. If MA moves down, and prices on down the line, this means that the downward trend, and we need to find a point of entry and the opening transactions in put/get down.

for more details, watch the following video

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