How to use the moving average like the professional trader

moving average

There are many different ways and techniques to trade the live assets in the market. Trading strategy tends to vary from traders to traders since the strategy is being developed based on the trader’s personality. However there some common tools that every single professional use in their trading and as a novice trader it’s our duty to learn how to use the common tools in the market. Moving average is often considered to be the most widely used indicators in the market due to its extreme level of reliability. The professional traders use the moving average in the market to trade the dynamic support and resistance level in the market with the great level of precision. In this article, we learn how to use the moving average like the professional trader.

Dynamic levels in the market: If you truly want to become a professional trader in the financial market then it’s highly imperative that you know how to trade the key support and resistance level in the market. If you look at the professional then you will notice that they often use the moving average in the market to find the dynamic support and resistance level. When the price is traded below the simple moving average it acts as a dynamic resistance level and when it is traded above the dynamic resistance level it acts as a strong support level. All the professional traders in the financial market trade the dynamic support and resistance level in the market with a different value of the moving average. So when you execute your orders in the market make sure that you have tested the preset value of the moving average.

100 and 200 days SMA: The moving average can be used with many different values. Most of the novice traders often messed up their trading charts by loading too many moving averages. But if you look at the professional trader then you will they see the all of them use only one or two indicators in the market. The most widely used in indicators in the forex market are the 100 and 200-day moving average. Most of the novice traders often use this indicator in the smaller time frame and thus incur heavy financial loss but as a trader, you should always remember that moving generates the best possible signals in the higher time frame only. So if you have involved in the online trading market and trade the smaller time frame than you will face lots of false signals in the market. So make sure that you use the higher time frame in the market so that you can get the best possible trading signals.

Use price action confirmation: Price action trading strategy is considered to be one of the most reliable and profitable trading strategies in the world. In the eyes of trained professional trading, the higher time using moving average along with price action confirmation signal is one of the most profitable ways of trading the financial instrument in the online trading market. If you are relatively new in forex trading than its true that you will have some difficulties in learning the art of price action trading strategy but if you have a strong passion for becoming a successful trader than within a few month you can clearly master the art of price action. Once you master the price action trading strategy look for price action confirmation signal in the online trading market. The professional traders look for price action confirmation signal near the 100 and 200-day dynamic moving average to execute their orders in the market. So make sure to use price action confirmation signal in the market while trading the 100 and 200 days SMA.

Summary: Trading with the moving average is extremely simple profitable. As a trader, you can use a different value of the moving average in the market but 100 and 200 day SMA tends to be the best moving average in the market. If you look at the professional traders than you will see that they are executing high-quality trades in the market by using the moving average and price action confirmation signal in the market. But always make sure to follow proper risk management factors while trading the dynamic levels of the market.