Switching off all except the most important periods in the indicator settings (21 & 55 + 100 & 200 MA) can help keep a nice clean trading chart, if that is your preference.
SIMPLE MOVING AVERAGE
Smooths out the price across each period to reveal short, medium and long term trends and potential areas of support or resistance.
- 50, 100 and 200 are three of the most commonly used/respected moving averages.
- The 200MA in particular provides very strong on longer time frames.
EXPONENTIAL MOVING AVERAGE
A slightly more sophisticated version of the moving average, the gives more weight to recent price action (i.e. a recent big move up/down will be reflection sooner... "the trend is your friend").
- 21, 55, 89 and 200 are four of the most commonly used/respected exponential moving averages.
- The 21 and 55 are undoubtedly the most powerful, and somewhat a self-fulfilling prophecy since so many people follow them.
Just so you know...
- Green = 55/50, blue = 89/100, red = 200/200
- EMAs are shown with thinner lines (as they change direction faster, think light and quick)
- SMAs are shown with thicker lines (as they change direction slower, think heavier and more respected)
My free Combined and Indicator, is also shown on the chart above and will save you valuable space on your trading screen, since you are strictly limited to the number of indicators you can use at one time. Give it a try and you'll wonder why you ever had separate indicators for and clogging up both your screen and indicator allowance.
These tools are for educational purposes only and not a recommendation to buy or sell. Always do your own research before trading.