What can you do with a moving average? How many strategies, methods or uses does a moving average hold for a forex trader? The answer is…plenty. In this episode, Darren and Walter lift the veil on the many uses for a moving average. You’ll see how many different ways (some of them very unconventional) you can use a moving average. Some you may have heard of, but others may be new to you. So if moving averages are in your trading arsenal, you may want to dive into this episode of the 2 Traders podcast.
http://media.blubrry.com/2traders/content.blubrry.com/2traders/EP09.mp3
Download (Duration: 16:33 / 18.9 MB)
In this episode:
02:02 – a pseudo-intelligence test
03:36 – moving average as a dynamic trend line
04:48 – using many moving averages….
05:57 – trend hints
06:48 – institutions using moving averages?
07:37 – moving average as a trailing stop
08:34 – market turning Points
09:41 – the bigger (price) picture
11:46 – the line chart is a moving average?
13:00 – the holistic view
13:55 – Darren’s “moving average myth”
Tweetables:
A simple trailing exit: get out when the moving average bends the other direction. [Click To Tweet].
When moving averages expand, the trend continues. [Click To Tweet].
Price is not attracted to moving averages – it’s an illusion. [Click To Tweet].
Download The Full Episode 9 Transcript Here
Walter: If you like to use trailing stop and you’re the sort of person that wants to sort of shoot for the sort of runners and the bigger wins, then it’s a really good market. A lot of people tend to-
Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the 2 Traders Podcast.
Walter: In this episode of the two trader’s podcast, Darren and I looked at that Swiss Army knife tool that traders used, call them moving average. We looked at how you can use a moving average to both: find exit for your trades, find entries for your trades and even how to analyze the market. Darren argues that the moving average is actually more valuable than support resistance, and he’ll explain why. Darren also reveals why when price moves across a moving average, you should definitely pay attention. How you can even take the simplest of all moving averages and create your own trading system. And finally, we wrapped up today’s session when Darren dives deep into the problems that traders run into when they see illusory moving average relationships on the chart and how you can avoid these. All these and more in today’s episode of the two trader’s podcast.
Walter: Welcome back to the 2 Traders Podcast. Walter, I’ve got Darren on the line. Hey Darren.