Moving average is one of the simplest trading and investing indicator. Many a long term invester uses this tool to invest in various securities listed in stock market. Of course they uses bigger timeframe to find out best investment . But day traders can use moving averages for their trading. To trade in intraday best setup to use is moving averages crossover. For interest trading 21 period MA and 9 period MA.
How to use moving average crossover to trade intraday.
on the chart window go to list of indicators and select Moving averages.
Now go into the settings of this moving averages indicator and select period of 9 days. And add another moving average to the same chart and set the days to 21 in this . give them two diffrent color . . one more tool you need to add is RSI.
now the question is when to take trade.
when RSI is equal to or greater than 30
and 9 period Moving average line is crossing 21 period line from downside to up. Go for buy.
when RSi is grater than 70 and 9 period moving average line crossing the 21 period moving average from upside down. Go for sell.
How to use moving average crossover to trade intraday.
on the chart window go to list of indicators and select Moving averages.
Now go into the settings of this moving averages indicator and select period of 9 days. And add another moving average to the same chart and set the days to 21 in this . give them two diffrent color . . one more tool you need to add is RSI.
now the question is when to take trade.
when RSI is equal to or greater than 30
and 9 period Moving average line is crossing 21 period line from downside to up. Go for buy.
when RSi is grater than 70 and 9 period moving average line crossing the 21 period moving average from upside down. Go for sell.