BEST SETUP MA INDICATOR IN OTC AND GLOBAL MARKET | QUOTEX

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determine how to setup moving average between OTC and global


Getting to Know the Moving Average (MA) Indicator in Quotex

Moving Average is one of the indicators that is widely used in technical analysis which can help to smooth price movements by eliminating some price fluctuations that are less relevant based on past price calculations, so that an average line of price movements is formed within a certain time period. The application of this indicator is not to predict the next price direction, but to find out the current trend.

There are two types of moving averages that are most widely used. The first is the simple moving average (SMA) and the second is the exponential moving average (EMA). If the simple moving average shows a smoother graph, the EMA focuses more on suppressing daily fluctuations.

 


SMAs tend to be simpler and are generally used to analyze long-term price movements. Meanwhile, EMA tends to be more responsive to price changes. You can use the EMA on shorter time frames, usually during important news releases that have the potential to move the price.



we usually use MA9 and MA20 in OTC market

for global market we usually use MA25 or MA20 and MA50


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SMA is very effective for predicting price trend movements in the short term, especially if the type of stock does have good liquidity and the fluctuations are sharp but reasonable so it is suitable for analysis in the short term. The method that is often used is to compare the long-term SMA with the short-period SMA.

 

The Moving Average indicator has a number of uses, including:

 


1. Identify stock value trends

Price charts along with Moving Average lines can help traders identify the current price trend. If the current price occupies the area below the Moving Average line, it means that the price tends to go down or bearish. Conversely, prices that are above the Moving Average indicate a bullish trend or tend to rise.

 

2. Determine the position of Support and Resistance

Support and Resistance is the point when the price bounces back and continues the trend, either bearish or bullish. The role of the Moving Average is to determine the location of the two points. The trick is to combine two kinds of Moving Averages, generally MA20 and MA50.

if you wanna know more or some practice video you can visit our you tube .

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