Simple Moving Average vs Exponential Moving Average

Simple Moving Average vs Exponential Moving Average

Whether you want to start trading Forex, cryptocurrencies or the stock market, one of the things that you need to know all about is the moving average. Now in case you are not sure of what moving averages are, don’t worry about it because we will explain all of this in great detail below.

With that being said, if you have no idea what moving averages are in relation to trading, then you are going to have huge problems making money. In fact, when it comes to technical analysis in trading, knowing about moving averages is one of the most important things that you need to know. Now what you also need to know is that there are different types of moving averages.

The two main types of moving averages that you need to know about are the simple moving average and the exponential moving average. Now both of these trading indicators are the same type of indicator, but they do function in slightly different ways.

Moreover, the two provide you with the same type of information, but one tends to be a little bit better in terms of recent information than the other. This is one of the main things that we will discuss today. Right now, we want to compare the simple moving average to the exponential moving average to see exactly what they are all about.

We want to figure out what they are, how they work, and what the differences between them are, so you can then figure out which of the two is best for you to use. Let’s compare the simple moving average and the exponential moving average to help make your life as a trader easier.

Moving Average (MA) Explained for Traders

What are Moving Averages?

Before we can get to comparing the simple moving average to exponential moving average, what you need to know is what the moving average actually is. So in layman’s terms, this is a specific type of technical analysis indicator that is used in many different types of trading, whether it be crypto currency trading, forex trading or stock market trading.

What you also need to know is that when it comes to trading, there are four different types of indicators out there. Or in other words, indicators that are divided into four different categories and these include momentum, volatility, trend and volume indicators. What is important for you to know is that moving averages are classified as trend indicators. In other words, it helps you as a trader figure out in which direction the value of an asset or security is trending.

For instance, if there is an upward trend in a moving average, it could imply that there is a price increase on the horizon. To put it in the simplest terms, a moving average is a type of trend indicator that helps you determine in which direction of prices moving and to a certain degree will also help you determine what the momentum of that trend is.

A Lowdown on the Simple Moving Average

Alright, so now that you know what moving averages in general are the first type that we want to take a look at is the simple moving average, and as you can probably guess by the name of it, it’s the much simpler of the two types that we are here to discuss today. The most basic definition of the SMA is that it helps to calculate the average price within a selected range or time period.

To explain this in more detail, the simple moving average takes a very specific amount of closing prices of a security or asset and then divides that number by the number of days or periods in that range. To put it in simpler terms, a simple moving average is a type of technical indicator that will help you figure out whether or not the price of an asset will continue to rise, or if it will, then reverse. To put this in other terms.

The SMA can help you determine if there is a bull or better trend on the horizon. Whether you are a stock market, trader, cryptocurrency or Forex trader, this simple moving average is a very good type of trend indicator that can inform you of the trend direction of any type of security or asset. It’s all about letting you know where and when to place those trades.

Moving Average

Advantages of the SMA

First of all, let’s take a look at the various advantages that come your way. If you choose to use the SMA indicator.

  • First and foremost, the simple moving average offers you a very smooth line that’s not prone to whiplashing up and down in response to slight or temporary price swings.
  • What can also be said is that the SMA is best used for fairly long periods of time.
Disadvantages of the SMA

Of course, just like with any technical indicator out there, that simple moving average does also have some drawbacks that you need to be aware of.

  • The number one drawback that you need to be aware of with the simple moving average is that it’s very slow to respond to recent price changes because it doesn’t put much weight on the most recent prices.
  • Due to the fact that it is quite slow to respond, it doesn’t work very well for short time frames.

Calculating the SMA

Of course, what is important for you to know is how to actually calculate the SMA. With that being said, the simple moving average is of course the simpler of the two types that we are here to discuss today, and it’s actually quite easy to calculate. All you really need to do is to take the closing prices of a specific amount of days, say for five days, and then divide that by those five days. Take a look below for a clear example on how to do this calculation.

$8+$9+10+11+12 = $50

$50/5 = 10

A Lowdown on the Exponential Moving Average

Now that you know what SMAs are, you need to know what exponential moving averages are. And yes, this is the more complicated of the two. The exponential moving average is another type of technical chart indicator that helps you track the price of a stock commodity, a currency pair, or anything in between.

Just like the SMA, the EMA is also a specific type of trend indicator that tells you the trend of asset or security. To a certain degree, it may also inform you of the momentum.  now with that being said there is of course a big difference between the two and the difference is that with simple moving averages the most recent prices equally weighted with all of the other prices whereas with an exponential moving average the most recent price that is used in the calculation has the most weight or importance put on it because of the fact that exponential moving averages place the most importance on the most recent price. It is therefore ideal to use for shorter time periods as it reacts very quickly to price changes. It is more accurate on short timeframes than the simple moving average.

Moving Average

Advantages of the EMA
  • By far the biggest advantage of the EMA is the fact that it responds very quickly to price changes, and this is useful for intraday traders.
  • This type of moving average is much better at calculating short term trend reversals.
Disadvantages of the EMA
  • Because the most important is given to the most recent prices, the EMA can whipsaw back and forth, or in other words, it can produce false signals due to be a little too reactionary.
  • If you are engaging in long term trading then the exponential moving average indicator is not the best choice to go with.

Calculating the EMA

To calculate the EMA, you need to figure out the SMA for a specific period of time. For example, if you have a 20 day time period, you need to calculate the SMA for that period, and then, on the 21st day, you can use the SMA of the previous 20 days as the first EMA for yesterday.

You must then also calculate the weighting or the smoothing factor for the EMA, which is [2 / (number of observations) +1], which in this case would be [2/(20+1)] = 0.0952.

The final step of the calculation of the EMA is EMA = closing price x multiplier + EMA of previous day x (1 – multiplier). Yes, this is of course a bit complicated, but with just a little bit of practice, you should be able to master this calculation with relative ease. Just go to some price charts and give it a shot.

The Bottom Line on the Moving Averages

Now that you know what MAs are as well as what the difference between the simple moving average and the exponential moving averages. You can start using this type of technical trend indicator to start placing profitable trades.

Remember folks, if you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

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Trading Indicators for Newbies

Trading Indicators for Newbies

For anybody who is just starting out in the world of trading, whether it be cryptocurrency, forex or stock market trading or anything else for that matter, what you definitely need to know all about our Bay trading indicators.

Just in case you don’t know what day trading indicators are, don’t worry about it because we will explain this in rather great detail below. The fact of the matter is that if you don’t know what trading indicators are, you are going to have a whole lot of trouble making any kind of money on any market.

Day trading indicators are all about providing you with vital information that will tell you exactly when, where and how to trade. There are various pieces of information that you can gleam from a day trading indicator. And yes, we will talk about all of this below as well, but we’re here to do today is to provide newbies with a bit of a guide on these day trading indicators.

Today we’re going to discuss what day trading is, what indicators are, how indicators work, what information they provide you with, as well as what the best indicators in the world are. Let’s get right to it and teach you everything that you need to know about day trading indicators to start making money in the real world.

Top 3 Day Trading Indicators To Simplify Your Trading

 

What is Day or Intraday Trading?

OK, so before we can start talking about indicators for trading, it is important that you know what actual day trading is first and foremost. Day trading is often characterized by a high degree of technical analysis. It also requires a whole lot of self discipline and objectivity in order to be successful.

What is equally as important to know is that day trading is usually all about the practice of either purchasing or selling a specific security or market asset in a single day. For this reason, day trading is also known as intraday trading because everything that you do happens within the span of a single day.

What is also important to note is that day traders utilize a lot of leverage and various short term trading strategies in order to capitalize on very small price movements that occur in liquid currency and stock markets. In other words, day trading is all about placing traits that generally only last for a single day.

Trading Indicators

 

What is a Trading Indicator?

Alright, so now that you know what day trading is, it’s probably good for you to know what a day trading indicator is. If we were to provide you with a basic definition of an indicator, it is a tool or a set of tools that you apply to a trading chart that will help make the market more clear.

In other words, the number one main purpose of various trading indicators is to provide you with various pieces of information, such as when an asset is oversold or overbought, what the trend is like, what momentum is like volatility and more.

Furthermore, trading indicators are specific mathematical calculations that are then plotted as lines or dots on a price chart and this helps to identify certain trades that can be placed.

The other important thing for you to know here is that indicators usually refer to a technical chart pattern that comes from the price volume or the interest of a given asset. There are of course many different kinds of indicators out there, and they all tell you different things.

 

Four Pieces of Information That Indicators Provide

Alright, so now that we know what day trading is and what indicators are what we need to talk about, are the four different pieces of information that various day trading indicators will provide you with.

Trading Indicators

  • The first type of indicator out there is the trend indicator and this will tell you in what direction the market is moving. Or in other words, what the trend is. These also may be known as oscillators as they usually move up and down between high points and low points.
  • The next type of indicator out there is the momentum indicator, and this tells you what the momentum out an asset in his life or in other words, it tells you how strong a trend is. This type of indicator can also signal a reversal.
  • The third type of indicator that you need to know about is the volume indicator, and these are designed to provide you with information about how much of a certain asset is being bought or sold over a specific amount of time. This indicator will also indicate how strong that price movement is.
  • The fourth type of indicator that you need to know about is the volatility indicator, and this is in fact one of the most important indicators of all, as it tells you how much a price changes over a given time and if asset has high volatility then there are big price movements.

 

The Five Best Day Trading Indicators for Newbies

Now that you know the basics about indicators, let’s talk about the five most popular day trading indicators out there that are best used by newbies.

 

Stochastics

The Stochastic Oscillator Is a fantastic momentum indicator that provides you with information about the closing price of a stock, as well as the range of the price over a certain period of time.

RSI

The RSI, also known as the Relative Strength Index, is another great momentum indicator that features a single line with values ranging from zero to 100. This indicates if a stock is oversold or overbought, with any reading below 30, meaning that it is oversold and any reading above 70, meaning that it is overbought.

Moving Averages

Moving averages are yet another type of momentum indicator that provides you with information not only about the momentum of a trend but also trend reversals. This type of indicator can also provide you with information about stop losses and stop loss points. This type of indicator is all about allowing you to find opportunities in the same direction as the current trend.

CCI

The CCI, also known as the Commodity Channel Index, allows traders to identify new market trends and is therefore one of the most useful trend indicators out there.

BB

BB, also known as Bollinger Bands, is one of the best volatility indicators out there. When the market is moving and volatility is high, the bands will widen and move further apart from each other and vice versa.

Trading Indicators

Best Newbie Day Trading Indicators – Final Thoughts

When all has been said and done, as long as you know how to use a few good indicators for day trading, then you should have absolutely no problems making consistent profits on a daily basis.

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Best Strategies at Andrew’s Trading Channel

Best Strategies at Andrew’s Trading Channel

If you happen to be a newbie trader that wants to learn how to make money, then what you need to check out his Andrews trading channel. The fact of the matter is that trading, whether you’re trading forex, crypto currencies, or anything in between is not easy if you don’t know what you are doing, chances are you are going to end up losing every single penny that you invest. Well, this is something that Andrew’s trading channel hopes to change. Today we want to take a closer look at exactly what Andrew’s trading channel is, what you will learn, who Andrew is, and more. Let’s get to it!

Andrew’s Trading Channel

What is Andrew’s Trading Channel?

For those of you who don’t know what Andrews trading channel is, this is the channel that you can find on YouTube. And yes, it is 100% free of cost. Andrew himself, as a longtime day trader that has been in the business for well over a decade and he is able to make a very good living being a trader.

Andrew's Trading Channel

Now, not only is Andrew an extremely proficient Forex stock market and crypto currency trader, but he also makes for an excellent teacher who knows how to convey these difficult concepts to newbies in ways that are very easy to understand. When it comes down to it, Andrew is a fantastic trader and an even better teacher.

VISIT ANDREW’S TRADING CHANNEL

There is really nobody that we would rather learn from. In terms of Andrew’s trading channel, this is a 100% free resource that contains literally thousands of trading guides, tips, reviews and much more. This is where you find the best free trading education around.

Trading Guides & Tips from Andrew’s Trading Channel

OK, so now that we know what Andrew’s trading channel is and what it is all about. What we want to do is to take a closer look at some of the most recent and most popular trading guides, strategies and tips that he provides on this channel.

Making $10,000 Trading Gold

One of the most recent videos that has been uploaded to Andrews Trading channel is this one that is all about how to trade gold against the euro and how to trade gold against the United States dollar in order to make big time profits. As you can see from this particular video, Andrew was able to make nearly $10,000 in profits in just a single day of trading. To be exact, he made just over 9000 euros in a single day, which is of course a huge profit. If you follow all of the tips and rules that Andrew provides you with in this video, then there is no reason why you cannot recreate these results for yourself.

Economic Calendar News Trading

If you are a total newbie to Forex trading, something that you might not know is that one of the most important things to do before each day of trading is to take a look at the economic calendar and economic calendar provides you with all of the most important information in regards to news releases. In case you didn’t know economic, political, and market news all have massive effects on trading. In this particular video on Andrews trading channel, Andrew teaches you exactly how to trade forex using the economic calendar. Knowing what news is happening around the world is extremely important when it comes to being a successful Forex trader. In this video you will learn exactly how to use an economic calendar to make profits.

Day Trading Keys to Success

The reality here is, of course that if you have never traded Forex or traded any other markets before, you probably have no idea where to start. For this reason, you should definitely check out this particular video on Andrews trading channel. That is all about the various tips and rules that you need to know as a newbie in order to be successful here. Andrew teaches you all of the things that you need to do, as well as all of the things that you need to avoid. If you plan on making money. When it comes down to it, if you are a total movie, this is one of the first videos that you will want to watch.

The Best Forex Signals Group

Yet another video on Andrews trading channel that we definitely recommend checking out is this particular one that is all about the best signals group. If you want to make money in the world of 4X but just don’t know what you are doing, then something you should try using is a signal service. A signal service will provide you with the trades that you can place on any given day, and they come complete with entry and exit points. In other words, a signal service like this allows you to more or less copy and paste trades, so you can make fast and easy profits without actually knowing the first thing about trading at signals service such as this quite literally holds your hand throughout the entire process, so you don’t have to do any thinking or heavy lifting.

Best One Minute Forex Strategy

The simple reality is that if you want to be a professional Forex trader, you generally need to spend several hours per day in front of your computer, at the very least. If you are like us, you probably have kids, a day job and much more, or in other words, you just don’t have the time to be a full time Forex trader. However, in this particular video that was uploaded to Andrews Trading channel just about a week ago, you will learn how to utilize a one minute Forex trading strategy, in other words. You can place trades that are only open for one single minute and they will still provide you with big time profits.

Andrew’s Trading Channel – The Verdict

The bottom line here is that if you want to become a successful Forex trader, then Andrew Trading channel is one of the best places for you to get a free education. With. That being said, do keep in mind that this is more or less just a random assortment of reviews, tips, trading guides, strategies and more, but it does not qualify as a full scale or fully comprehensive education. If you want a truly comprehensive trading education to become a Forex trading guru, then what you want to do is to check out the income mentor box Day Trading Academy which is at this time the world Forex trading school for newbies.

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

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Triumph Scalper System Review & Update

Triumph Scalper System Review & Update

OFFICIAL LINK

Something that you definitely don’t want to miss out on is the triumph scalper trading system. If you want to trade forex or foreign currencies profitably and on a consistent basis but just don’t know how to do it, then a tool like this can definitely help you get the job done. This is a relatively new piece of Forex trading software that was just released in the previous month and it has already managed to make quite the impact on the trading community.

The simple reality is that this triumph scalper trading application is hands down one of the best forex trading tools out there that can help you put money in your pocket on a daily basis. This tool is all about making your life much easier and providing you with all of the information that you need to trade forex without actually knowing the first thing about trading. We are here right now to take a closer look at this triumph scalper application to see exactly what it can do for you.

triumph scalper

What is it?

OK, so for those of you who still don’t know this triumph, scalper trading application is a brand new piece of software designed to provide you with accurate buy and sell signals so you can easily place profitable Forex trades without having to know or do much at all. Now, what you do need to be aware of here is the fact that this is not some kind of manual trading strategy that you need to follow.

However, at the same time, this is also not the fully automated piece of trading software. It does not place trades on your behalf, however, what it does do is provide you with awesome trading signals that you simply execute trades on. This is a tool designed to provide you with all of the information that you need to place profitable trades without actually having to know much about Forex trading.

Now, in terms of exactly what it does, beware that this is a Forex scalping application, or in other words it provides you with buy and sell signals or very short term trades that only use a small investments. It’s all about making lots of small profits over a short period of time, which end up adding up into substantial amounts. The reason why this type of trading scalping trading is so popular is because it is fairly low risk in the grand scheme of things.

The other important thing that you need to know about this triumph scalper trading system is the fact that it is not some kind of standalone trading platform. You do need to use it with a real trading platform with meta trader for being the platform of choice. You have to install this software onto your meta trader platform and then attach it to the correct charts. However, other than that, there is really not much work involved at all.

Forex Trading Made Simple

In case you are wondering whether or not this software is right for you, we would say that it probably is. The fact of the matter is that this is one of the most accurate and profitable Forex trading systems out there, not to mention also one of the most user friendly and easy to navigate.

When it comes down to it, if you are a total newbie to the world of trading then this triumph scalper system is definitely something that can help you make money. It’s all about helping newbies with limited knowledge and time make money without actually having to know much or do much. Triumph scalper software is Forex trading made easy.

triumph scalper

Triumph Scalper Signal Accuracy & Profitability

Of course, one of the most important things that you need to know about any kind of trading software such as this is how accurate it actually is and how profitable it is. OK, so the Forex buy and sell signals that you are provided with here are accurate up to 97% of the time and are accurate at least 90% of the time with an average accuracy rate of roughly 95%. Folks at 95% accuracy rate means that you can win 95 out of every 100 trades that you place with this system, thus allowing for great profits. One potentially only 5% of the trades you place or loses. It makes it nearly impossible to lose money.

Now you don’t have to take our word for it because our very own Andrew tested the system out for himself and his live trading results are up on his trading channel for everybody to see.

As you can see from the video that we have included here, Andrew was able to make $7800 in profits off of the $10,000 investment, which means that his return on investment was a full 78%. People Andrew is able to make a 78% return on his investment in just four days of trading and all without really having to do any work or thinking. If you use a triumph scalper system properly, you can make the same amount of profits as Andrew, if not more.

Other Important Triumph Scalper Facts

  • What is really cool is that this triumph scalper application comes with a three tiered alert system that you can customize to provide you with alerts whenever the best signals come out.
  • What you might really like about this particular piece of Forex trading software is that there are three different risk levels that you can set the software to, as well as a custom risk level as well.
  • What’s really cool about trying scalper software is the fact that you only need $100 to start trading with it.
  • Keep in mind that this software is best used with the M1, M5, and M15 time frames. Remember, this software is all about short term Forex trades that are not open for a long period of time.

Triumph Scalper

Triumph Scalper Official Update – The Verdict

The verdict here is that this trying scalper application is just as profitable now as it was a month ago when it was first released. If you plan on making money in the world of Forex but just don’t know where to get started in this, trying scalper system is a great stepping stone start with.

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The Ultimate Profit Scalping Indicator

The Ultimate Profit Scalping Indicator

If you are having trouble making profits as a newbie trader then something that you might want to check out is the ultimate profit scalping indicator. This is a relatively new indicator that is available for everybody to use, one that provides you with all of the information that you need in order to make profitable trades. Now the simple reality in trading is that it is much easier to lose money than it is to make it, especially if you have no idea what you are doing.

The bottom line here is that if you don’t have the right tools helping you out, it takes many years of knowledge, skill and practice in order to become a successful Forex, cryptocurrency, or stock market trader. It really doesn’t matter what kind of trading you are engaging in, because they’re all fairly difficult and they all require you to have the right tools in your corner.

Now in case you have not heard of the ultimate profit scalping indicator before, this is exactly what we are here to talk about today. A tool that can help you make fast and easy profits with relatively little work and knowledge. In other words, this is an indicator that more or less holds your hands through the entire trading process, thus allowing you to make profits even if you have no idea what you are doing. Let’s take a closer look at this ultimate profit scalping indicator to see exactly what it can do for you.

UPSI

Trading Indicators & Scalping

OK, if you are truly a newbie to the world of trading then you might not even know what exactly an indicator is. Right now we are going to provide you with a definition of what an indicator in trading is. “In the context of technical analysis, an indicator is a mathematical calculation based on a security’s price and/or volume. The result is used to predict future prices. Common technical analysis indicators are the moving average convergence-divergence (MACD) indicator and the relative strength index (RSI)”.

This is also what the ultimate profit scalping indicator is. A special type of trading indicator used for technical analysis that provides you with vital information about the volatility, movement and direction of future prices.

UPSI

Now the ultimate profit scalping indicator is of course about scalping in trading. Now, with that being said, if you have never traded before, you might also know what scalping and trading is. Well, in trading, scalping is a type of trading that involves either selling or buying a currency pair or another type of asset, but only holding onto it for a short period of time with the end goal mean to make small profits, but many of them.

When it comes down to it, scalping and trading is all about short period trades that provide you with small profits and are only open for a few minutes at most. Well, the UPSI indicator is designed to capitalize on those short term trades in to allow you to make many small profits per day.

The UPSI or Ultimate Profit Scalping Indicator

OK, so now that you know what an indicator is and what scalping and trading is, let’s take a look at this brand new ultimate profit scalping indicator. This is an indicator that uses a series of extremely advanced market analysis techniques and algorithms to determine what the best possible signals are to trade with at any given time.

When it comes down to it, all you have to do is wait for the signals to come out and then execute the traits as indicated. Folks, it really doesn’t get much easier than that because it’s more or less just a copy and paste job less, allowing you to make large sums of money without actually knowing how to trade.

ultimate profit scalping indicator

Important Facts

What we want to do right now is to provide you with all of the most important facts that you need to know about this ultimate profit scalping indicator before making a purchase.

  • This particular indicator is designed to trade any and all forex currency pairs. However, with that being said, this ultimate profit scalping indicator also provides you with short term signals for stocks, crypto currencies, commodities and other market asset types. If it is something that you can trade, then the ultimate profit scalping indicator can provide you with signals.
  • When using this particular indicator, remember that you really only want to use it with one hour, 4 hour, and one day timeframes, but nothing that lasts longer than that.
  • What you also need to be aware of here is that the ultimate profit scalping indicator comes with three main components. The first these components is a trend component that provides you with the accurate buy and sell signals. The second of these components is the UPSI trend cloud, which is used to identify both short and long term trades. The third of these three components is the volume indicator, which informs you of the specific volume that assets are being traded at.
  • It is also worth noting that none of the signals provided by this UPSI or ever repainted, which means that they do not change, thus saving you from any unwanted surprises.
  • The simple reality is that this ultimate profit scalping indicator is indeed one of the very easiest and most user-friendly indicators to use, one that should allow you to make money without really knowing the first thing about trading at all.
  • This profit scalping indicator also comes complete with an alert feature that alerts you whenever new signals come out, so you can trade with them right away.

Ultimate Profit Scalping Indicator Review: Final Thoughts

The bottom line here is that if you need a great trading indicator for Forex, the stock market, cryptocurrencies and more than the ultimate profit scalping indicator is exactly what you need.

This is an indicator that can help you make hundreds of dollars if not thousands of dollars per day in pure profits and all without really knowing a single thing about trading Forex, the stock market, or crypto currencies.

For one very low price you get access to an indicator that allows you to make fast and easy profits on a daily basis.

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