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Moving Averages are the second most important chapter after Support and Resistance. If you have used multiple indicators like RSI, Stochastic & more you will see the presence of the Moving Average indicator.
Moving Average indicators are of three types and one of them is Simple Moving Average. In this article, I will help understand the concept of Simple Moving Average and how you can use the same to find the quality upcoming trends and reversals.
How to apply the Simple Moving Average Indicator on Pocket Option?
To find the Simple Moving Average indicator on trading platform follow the steps below:
1> Log in: The first and foremost step is to log in to your trading account. In case, you don't have a Pocket Option account use this link. Once you click the link you will land on the Pocket Option homepage next, click the registration button and fill in the necessary details such as Email address, password and hit sign up.
2> Apply Candlestick chart: Secondly, Apply the candlestick chart or Heiken Ashi just click the chart button at the top of the page and find the two charts in the list and click the name.
3> Find the Moving Average Indicator: Next, click the indicator button at the top of the page and search for the moving average indicator in the list.
4> Apply Necessary changes: Duration is really important while using the Moving Average indicator with the short duration the indicator will react faster to the price changes while with the short duration the indicator will react slower to the price changes. The fast-moving average line is usually used in short-duration trade and vice versa, the slow-moving average line is used for long-duration trades.
How to Trade?
Finding Trends and reversals using the Moving average lines is very simple and easy
When the moving average line intersects above the price it signals a bullish trend and you can use this opportunity to place a buy trade and vice versa, When the moving average line intersects below the price it signals a bearish trend and you can use this opportunity to place a sell trade.
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