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TRENDLINE VS moving average !

4 replies to this topic

    Registered User

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 ......

Posted 29 January 2012 - 01:43 PM

    Senior Member

Thinks for the tip but MA is also a good way to check reversal. usually every indicators is really helpful we just don't know how to use them. Indicators are ingredients in cooking. if you want to cook you need heat you need ingredients you need menu. In forex is the same, you need skills, you need funds you need strategy etc. In cooking even though you use the same ingredients and the same recipe your cook and the other cook don't still taste the same. in forex is the same also. You maybe using the same strategy but the result is not the same.

Posted 19 February 2012 - 11:30 PM


I like this poin of view. I have a doubt about a 66% confidence on MAs, because it depends on what MAs, 10th or 20th or 100th? But the method is very good. This is an idea which has to be developed in tight relations with other traders ideas, tools and tricks.

Posted 30 March 2012 - 04:03 PM

    Registered User

Thinks for the tip but MA is also a good way to check reversal.

Posted 17 January 2013 - 08:21 PM

    Registered User

do not compare it. each indicator is effecitve. but it has good time and bad time. we must combine some indicator to get better signal. this is plan trading. i learn from other trader. in one time i lose all my money . i was sad. i told with some friend in market. i learn from them about plan trading. i spend 2 months to build it. now i can get strategy with some indicator. we don't put money in signal of 1 indicator. it is risky

Posted 02 March 2015 - 09:23 AM

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