

Day Trading – The Best Moving Averages For Day Trading
To trade the forex markets, you need the right tools. Tools that, you would normally find, in your trading platform. Off course, you would have to have gained the knowledge, of the markets, to be familiar with any of the tools, on your platform. In this regard, we are referring to “indicators”.
We shall keep our focus on one of the many indicators, available to us in our platforms, which in this case is the “Moving Average”. It is a very common indicator. For the sake of the newbies, when you go to the left hand side, of your meta trader 4 platform, under the heading “Navigator”, you should be able to spot “Indicators”, now when you click on that, scrolling down, you will not miss your “moving average”. The moving average parameters for period, is usually set on fourteen (14), by default, but you can change it, to give you better readings.
Now, this thesis is to assist individual traders with parameters that have proven to be quite effective. Most experienced traders would prefer not to clot up their charts, with too many indicators. While some may not mind, so far as what they see on their charts, is clear to them. Now this would depend on what works best for you so as not to get confused.
Your moving average parameters’ line is on 14 day for the period. What you would do is to change it to a 20 day MA. The “MA”(moving average) method which is on “Simple” would need to be changed to “Exponential”. Finally you can change the colours to help you identify each “MA”, since you will be drawing up more than just one. Leaving the MA method on exponential, you will draw up another MA line, this time the period parameters, should be changed to a 50 day. You continue this same process, each time changing the period parameters. You include 100 and then 200 day MA, each with its’ own colour for easy identification. By now you would have drawn up four MA (moving averages) on you chart. Your 50 day MA would help you identify, when the market is half way there, while your 200 day MA would tell you, the market is at a reversal point. If your candle sticks are above the 200 day MA, on a 1hr chart, you know that you are in an up-trend. If it is under it, then you know you are in a down trend.