【Beginner】Technical Course｜Moving Average (Moving Average)

【In practice】 All indicators, rules, and theories are

“Trust and wait for the moment”is the absolute rule.

Technical Course | Moving Average

(Moving Average)

The most popular indicator.
In my trading, moving averages are the lifeline.
Though simple, understand its advantage and use it.

What is a Moving Average?

An average of closing prices over a set past periodEnding price, connected by a line. It smooths price noise andvisualizes the current trend direction and strength.

Two main types (SMA / EMA)

• SMA (Simple Moving Average)
  Average of the specified period's closing prices.
  Characteristic:Smooth with few whipsaws / reacts relatively slowly.
• EMA (Exponential Moving Average)
  Gives greater weight to recent price movementsin the average.
  Characteristic:Close to candles and responds quickly / more susceptible to noise.

※ Tap the image to enlarge

How to set the period

Common reference points:5・10・15・20・21・25・75・200
There is no single correct period.Choose based on the length of the trend you want to capture, andbuild your logic on that period.

Use the period that fits the trend you want to capture.

How to read basics (very important)

• Price above the MA…Buying pressure (long bias)
• Price below the MA…Selling pressure (short bias)
• Angle of the MA…The stronger the slope, the stronger the trend (flat means range).

As support/resistance

Moving averages often function asdynamic support and resistance lines, and points where the price touches them become
“pullbacks/corrections”or rebounds/breaksas decision points.

With a single moving average, you can determine buy/sell/range.

Practical usage in trading (additional)

• Capture short-term momentum:EMA (e.g., EMA20)
• Medium-term baseline:SMA (e.g., SMA50, 75)
• Long-term big-picture view:SMA200 (if above, expect uptrend; if below, expect downtrend)

Checklist (to use in the shortest time)

1. Is the priceabove or below the MA? (direction)
2. What is the MA'sangle(strong/weak/flat)
3. Touch/break of the MA to judgepullbacks/corrections.