How can a Moving Average becomes a rainbow?

Never underestimate the power of Moving Averages

A lot of  New Entrants in the market believes that the more complicated the indicators they use, the better.

That is a TOTAL LIE.

Simply looking at how the moving average forms a rainbow color, it will give you a Pot of Gold at the end, only if you knew how each one behaves.

According to Marty Schwartz

“I always check my charts and the moving averages prior to taking a position. Is the price above or below the moving average? That works better than any tool I have. I try not to go against the moving averages; it is self-destructive.”-

A very known trader, does not look down as to how powerful moving average is.

What is moving average?

According to investopedia,

A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random short-term price fluctuations. It is a trend-following, or lagging, indicator because it is based on past prices.

<https://www.investopedia.com/terms/m/movingaverage.asp>

Each moving average number has its own purpose.

And when you found it’s purpose and executes it, you will surely found a pot of gold as well.

Let’s start hunting for the line that will soon become a rainbow…

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Minda Paule
 

MINDA PAULE is a Certified Public Accountant, has a Masters Degree in Business Administration (MBA), financial advisor, professor, daughter, sister, author and, soon to be an entrepreneur. She is also the founder of mindapaule.com aka Money Planner, and passionately share about the need to increase financial literacy to every Filipino citizen.

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