Simple Moving Average on Close Candle

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi,

I have Moving Average and I need to know because I’m confused.

Buy: when Moving Average touch Close on Bearish Candle and Sell when touch close on Bullish candle?

Thanks for the answer.

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2

Using a MA and the close of a candle in this way is effectively creating another MA cross-over system. You have a cross-over between your standard MA plus a single bar MA, i.e. an MA of 1.

All MA cross-overs give poor entry signals buy t they are made to appear good signals on a historic price chart because they happen when price is following a trend. So they can be a good element within a set-up check-list but they are a poor entry signal on their own.

The trend is more important than the entry.

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3

Hi there👍🏻

I Agree with @tommor. Follow the trend then you can pretty much enter anywhere without measing it up too badly. Sorry not to be able to answer your specific question but I don’t underatand enough about candlesticks/indicators. Us trend followers are pretty basic! I used to try to do all the clever stuff, but couldn’t make money. Now I just go long when it’s going yp and short if it’s going down.

4

Yes, moving average is an useful trading tool; but you can’t take the decision based on only the moving average!

5

To be honest, this type of trading system is valueless in a long run; Forex isn’t that much simple job!