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TRENDLINE VS moving average !


wizardalltime

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HI EVERY BODY , this is a comparison between trend line and moving average on targeting of mid term positions .

 

first a quick review about each.

 

the trend line : -

 

What Does Trendline Mean?

A line that is drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame.

 

in my opinion : trend line on daily frame if you draw it on a a right way can be your target but it`s moving so you must check it daily .

 

second the moving average : -

 

What Does Moving Average - MA Mean?

An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

 

in my opinion : using moving average in trend reversing signals specially moving average 50 give a 66% approximately percent of real reversing signal

 

the difference in :-

in terms of a down trend to be broked in trend line all time it`s going down no mattre the price so it will give you signal first and before the moving line 50 (ex.)

but the moving is affected directly with the increase in price which will make the moving missing 60% of the win buy position.

 

 

thanks every one ......

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  • 1 month later...

I have been using SMA on my charts to take new positions but never tried it with trendline. I never looks at the trend either if my trading system which contains 5 different indicators confirms a position to be taken. However, I do get losses with my trading system but not much then the consistent profits.

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  • 6 months later...

I still do prefer to use MACD than to use trendlines. As in MACD you can find a strenght of the reversal. And the reason why theirs a missing 60% as you say its because the reversal is not as strong as you think. trendlines does not detect how strong or how weak the reversal is MACD do. that's why you can see sometimes that the price still go up while the MACD is going down already simply because MACD detects the weak volume already.

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  • 4 weeks later...

In my opinion trendline is more powerful then moving averages. There are many moving averages used by different people, mostly 100 and 200 moving averages make good impact. But when it comes to trend lines there aren't many variations and millions of people do focus on them when making a trade, so i prefer trend line just ahead of moving averages.

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  • 1 month later...

i think the chart of forex is an art. trend line is used to give shape for analysis. but u should art the trend line with conscious. Don't forget that if you can not art the trend line in a proper way then you can not get profit. on the other hand u will lose your invest. so be careful.

moving average is the best calculative indicator for forex trading. i think sma is the best (smooth). period 12 and shift 1 is the best format in my eye.

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  • 1 month later...

Sterling versus the U.S. dollar. If the exchange rate is 1.6550, it means is a BangAnh equivalent to U.S. $ 1.6550.

Exchange rates move constantly and reflect market conditions change throughout the world and are affected by political or economic information and physical trading volume taking place. It operates 24 hours a day, five days a week

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  • 2 months later...

basically trend line or MA have same function. both of them used to read the current trend of the price movement. but according to me, trend line have more benefit because able to predict the potential peak of HH, HL, LH, and LL. trend line have same function as channeling. while MA unable to predict it and pure as indicator to reading the trend movement.

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I would always favor Moving Average since this is one of my favorite indicators to use and also results have been fairly good so far with this. Also, I am trading with OctaFX broker where they have latest cTrader trading software, it has updated charts and also all the latest system so that really helps with indicators as well because we get to know all the details and indicators become even more effective while can even know which trading session it’s going on thanks to this software.

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  • 3 months later...

Just choose which one that you think is more suitable for someone like you. TL and MA has its own good or bad things, if you combine it then TL and MA will give you more chance of seeing the current trend accurately compared only using one of it as indicator.

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