Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
1
00:00:02,520 --> 00:00:07,230
In this video, I'm taking a look at how to treat it, exponential moving averages.
2
00:00:08,690 --> 00:00:16,490
So moving averages one of the most common indicators that you will see in technical analysis and a moving
3
00:00:16,490 --> 00:00:19,100
average looks basically like this.
4
00:00:19,100 --> 00:00:22,060
It's a squiggly line that goes up and down.
5
00:00:23,140 --> 00:00:30,220
And what it is, is a mathematical equation that's being figured out for you, it's plotting every time
6
00:00:30,220 --> 00:00:34,600
there's a candlestick formed and then it connects it also it just looks like a line.
7
00:00:35,810 --> 00:00:38,670
And the idea is gives you the trend.
8
00:00:38,690 --> 00:00:39,890
It shows you if.
9
00:00:41,310 --> 00:00:43,820
Perhaps momentum's picking up that type of thing.
10
00:00:45,450 --> 00:00:50,520
So in order to do this, you need to click on indicators and strategies.
11
00:00:51,370 --> 00:00:58,810
And you can type in e m a which moving average exponential, I'm going to put four.
12
00:00:59,920 --> 00:01:05,980
On the chart, for the purposes of this video, I want to go ahead and click these eyeballs.
13
00:01:06,910 --> 00:01:14,080
And on this one, on the INMA exponential moving average, nine period, based on the clothes going
14
00:01:14,080 --> 00:01:16,420
to change the color to blue.
15
00:01:17,840 --> 00:01:24,880
OK, and you can see that the moving average does, in fact, go up and down with the average price
16
00:01:25,090 --> 00:01:28,080
of the clothes at the candlestick, obviously prices are rising here.
17
00:01:28,090 --> 00:01:29,380
So you would expect the nine.
18
00:01:30,500 --> 00:01:32,750
Emma to rise right along with it.
19
00:01:34,980 --> 00:01:44,220
You can also put other moving averages on, so, for example, let's go to this next one, click settings.
20
00:01:45,780 --> 00:01:50,650
Changed color to red, make it a little bit more easy to see, input's will change to 20.
21
00:01:51,800 --> 00:01:54,620
So this would measure.
22
00:01:55,940 --> 00:01:57,920
The last 20 candlesticks.
23
00:01:59,670 --> 00:02:04,590
It's a little slower and therefore it gives you a little bit of a longer term outlook.
24
00:02:05,710 --> 00:02:09,340
Now, there are a multitude of ways to use.
25
00:02:10,320 --> 00:02:12,870
Moving averages, so, for example.
26
00:02:14,480 --> 00:02:22,730
Notice that the 20 seems to be offering selling pressure, and then once the market breaks above it,
27
00:02:22,730 --> 00:02:26,750
it seems to be offering support that's known as dynamic support resistance.
28
00:02:26,750 --> 00:02:28,250
And you'll see it time and time again.
29
00:02:30,100 --> 00:02:36,170
The 20 day in this case, moving average is one that a lot of people pay attention to.
30
00:02:37,030 --> 00:02:38,560
There's also a.
31
00:02:39,960 --> 00:02:45,740
Crossover system, and this is probably one of the oldest trading systems out there.
32
00:02:46,800 --> 00:02:52,770
And what happens is one of these moving averages will cross over the other, you know, obviously the
33
00:02:53,160 --> 00:02:59,790
nine, the faster moving one of the two does the crossing, it drops below the 20.
34
00:03:00,330 --> 00:03:01,500
And that's a cell signal.
35
00:03:01,510 --> 00:03:08,550
And what that tells you is that momentum for the short term is starting to accelerate to the downside
36
00:03:08,910 --> 00:03:11,280
in the longer term kind of goes right along with it.
37
00:03:11,780 --> 00:03:16,050
The idea is that if the faster moving of the two moving averages.
38
00:03:17,140 --> 00:03:23,830
Breaks down below the longer term one, then it is a cell signal, just as this would be a busy signal.
39
00:03:25,320 --> 00:03:32,100
Now, it's entirely up to you whether or not you do it in the classic sense where people would literally
40
00:03:32,100 --> 00:03:36,500
sell, buy and then if it crosses again sell, they were always in the market.
41
00:03:37,440 --> 00:03:41,360
There are some ways that you can filter some of the noise.
42
00:03:41,400 --> 00:03:43,260
So, for example, this cross here.
43
00:03:44,770 --> 00:03:48,850
Some traders wouldn't have taken that until the two moving averages spread further apart.
44
00:03:48,880 --> 00:03:55,200
That shows a divergence, if you will, of speed because the moving averages are relatively flat there.
45
00:03:55,210 --> 00:03:58,060
That shows that the market is not really going anywhere.
46
00:03:58,060 --> 00:04:02,440
But once it did accelerate to the upside, you can see that the moving averages spread out apart.
47
00:04:04,820 --> 00:04:13,490
There are a couple of special moving average crossovers, and I'll go ahead and show you those now in
48
00:04:13,490 --> 00:04:15,680
order to see these, we will need the 50.
49
00:04:16,930 --> 00:04:18,430
They Emma.
50
00:04:20,800 --> 00:04:28,630
OK, go ahead and paint that orange, let's go ahead and put that on, and then this one will need to
51
00:04:28,630 --> 00:04:31,540
be the two hundred make this black.
52
00:04:32,790 --> 00:04:34,290
So this is 200 days.
53
00:04:36,670 --> 00:04:41,140
So they have something known as the Golden Cross and the Death Cross.
54
00:04:42,300 --> 00:04:48,390
The Death Cross is very, very golden cross, as you would expect, would be bullish, and that is a
55
00:04:48,390 --> 00:04:55,050
moving average crossover when the 50 crosses over the 200 daily moving average.
56
00:04:55,200 --> 00:05:00,720
Specifically, it's just this time frame and just these numbers, just as the death cross.
57
00:05:01,860 --> 00:05:09,780
Is 50 crossing below the 200, so if you hear those terms, those are exactly what they mean.
58
00:05:09,780 --> 00:05:12,120
They don't it doesn't happen on the hourly.
59
00:05:12,120 --> 00:05:13,510
It doesn't happen on a weekly.
60
00:05:13,530 --> 00:05:15,240
It only happens on the daily.
61
00:05:16,450 --> 00:05:22,290
The problem with this, of course, is that it is such a high time frame.
62
00:05:22,290 --> 00:05:28,770
They are such large numbers that as you can see, you may get whipped around in this case.
63
00:05:29,430 --> 00:05:35,850
But when it does work, it tends to work for a very long period of time.
64
00:05:35,940 --> 00:05:41,670
You would have gotten in back here and you wouldn't have gotten the exit signal until here.
65
00:05:42,300 --> 00:05:46,350
So pretty long amount of time to get involved.
66
00:05:46,930 --> 00:05:53,250
Quite often what people will do is they'll use something like this to confirm maybe like a breakout
67
00:05:53,280 --> 00:05:57,930
or something, in this case, some type of candlestick formation, which, of course, will cover those
68
00:05:57,930 --> 00:06:04,050
later to validate that type of setup from a longer term perspective.
69
00:06:05,610 --> 00:06:08,970
There are a multitude of.
70
00:06:11,230 --> 00:06:16,840
Different ways you can use this, so let's go ahead and put a couple on this like coin chart.
71
00:06:20,380 --> 00:06:25,060
So this is a daily chart, so let's use a little higher time frame one.
72
00:06:27,220 --> 00:06:28,210
Let's go with 50.
73
00:06:30,310 --> 00:06:31,360
We'll make that red.
74
00:06:32,670 --> 00:06:33,840
Let's go with.
75
00:06:37,190 --> 00:06:47,150
Black on the two hundred on the daily, and this sets up an obvious up and down trend type of situation,
76
00:06:47,150 --> 00:06:49,220
you can see that we got a death cross there.
77
00:06:49,580 --> 00:06:51,460
And certainly that was a selling opportunity.
78
00:06:51,470 --> 00:06:56,860
Again, though, not a big fan of these, just simply because for the most part, they don't work,
79
00:06:56,870 --> 00:06:57,890
to be honest with you.
80
00:06:58,190 --> 00:07:01,960
You get massive gains or you get stopped out with a loss.
81
00:07:02,270 --> 00:07:03,600
It's kind of nowhere in between.
82
00:07:04,070 --> 00:07:10,640
That being said, though, when you look at this, you can see that the 200 day Emma did offer a certain
83
00:07:10,640 --> 00:07:17,480
amount of resistance and then support a lot of traders will simply only buy or sell depending on which
84
00:07:17,480 --> 00:07:24,830
side of the two hundred day Emma Price is, or in this case, we've had the Golden Cross.
85
00:07:25,130 --> 00:07:33,170
So that tells you that the 50 day Yemane is letting you know that shorter term momentum is to the upside.
86
00:07:33,170 --> 00:07:36,480
So then you start to look for buying opportunities.
87
00:07:37,220 --> 00:07:42,650
An example might be to use, you know, like a Fibonacci retracement.
88
00:07:43,890 --> 00:07:49,710
We've broken to the upside, we've come back to the 50 day ima go ahead and put a fib there and you
89
00:07:49,710 --> 00:07:51,570
can see it's right at the 50 percent.
90
00:07:51,900 --> 00:07:53,760
It's between the two moving averages.
91
00:07:53,760 --> 00:07:57,350
Price has been caught and it extends its way higher.
92
00:07:57,690 --> 00:08:02,220
We break significantly below the 50 day M.A on this particular day.
93
00:08:02,700 --> 00:08:07,260
Could give you a little bit of a heads up as to time to get out.
94
00:08:08,010 --> 00:08:14,340
In the next video, we'll take a look at how to trade something called McGeady or moving average convergence
95
00:08:14,340 --> 00:08:15,450
divergence.
9845
Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.