Moving Averages Explained: Trend Following for Day Traders #Shorts #daytrading #success #motivation

Fechar

A 5-period moving average adds up the last 5 closes and divides by 5. For closes of 50, 51, 49, 52 and 53, the sum is 255 and the average is 51. The trend-following idea: price above a rising average suggests an uptrend, and below a falling one a downtrend. The catch is that averages lag, and in sideways markets price crosses the line again and again, causing whipsaw losses. Test ideas on past charts and practice in a demo account first. Educational only. Not financial advice. Investing involves risk. Like and subscribe for more! #daytrading #movingaverage #trendfollowing