(Last Updated On: December 11, 2019)

So firstly, I use moving average just to get a general sense of the trend. Of course, I use trend lines to analyze whether the trend has changed or not. Sometimes, I use moving average just to help me to see whether, from a moving average angle perspective, has the down trend line or has the down trend been overcome? Has it turned into an up trend already?

So, let’s say the price is already moving above a certain moving average of a certain perimeter for this particular stock. Then I would also look at a trend line. Then I will say, “Okay, both these tell me that the down trend has been unconquered. Now it’s likely to be on the up trend from here already.”

So, there is one way that I might use moving average from a price action trading perspective, just to get me a general view.

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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