Thursday, June 7, 2018

The Use Of Indicator Moving Average (MA) In Forensic Psychology IQ Trading

This time I want to give you an understanding how to use the indicator Moving Average (MA) in Trading the IQ Option, the Moving Average (MA) is a moving average. What is the meaning of a moving average? It means the average price of an asset within a specified time, for example the pride is the average price of gold in 1 day.

This Moving Average is a very popular tool used good traders who still newbie or even professional. 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 trading indicators.

What is the point of Moving Average?
1. Determining the trend
2. Determine the entry point how do I use it?

Select the indicator "Moving Average" (MA) from the list of indicators.

Select the type of line – high school.  Priode MA standard is 14
Without changing the settings, click "apply".

Penetrating The Moving Average (MA)
Penetrate the MA is a way of trading that is used to determine a trend reversal or the end of the movement.

How to use:

1. Apply indicators MA or EMA on the graphs as described above.
2. Wait until the movement when the candle broke through to the top or to the bottom line of the MA:

-When candle closed above MA, will give the signal further movement of the ride, and if, so we will buy call options/ride.
-When candle closed below MA, will give the signal further movement down, and if, so we'll buy options put/get down.

Bouncing from MA
Bouncing from MA is the way in which that was 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 candle indicates price movements touch the line MA, whereas the next candle towards the opposite direction.
3. So here we have two candle i.e. 1 and 2 in the picture under the candle, the candle one is red, and two-colored candle Green.

-First candle moving down touching the second candle but MA line moving up, and closed above the line MA means indicates prices will turn (up) then we will call a mediocre life
-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 klik a put.

The use of advanced
Regardless of the methods mentioned above, there are many other ways to use the MA:

1. Crossed MA long-term:
Plug the line MA with pride 14, and then plug the lines MA one again with the pride 26

For example, if the short-term M.A. (14) penetrate MA long-term (26) from the bottom to the top, and stay on top of the average, it is a signal to the opening position, and consider movements of the ride/call.

2. Determine the direction of the trend:

Using the basic characteristics of the MA – Defines the direction of the trend. MA clearly indicate trend direction; the more the slopes, the stronger the steep trend. This way can also be applied to build the trading methods. 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.

That's how simple their use

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