I don't know why...and I can't explain why moving average forms some resistance/support level with a theory (e.g. perhaps anchor theory? - people evaluate prices with moving average level to find out whether a current price is under/overpriced)? Yesterday EURUSD depreciated when it reached ma100 in 1 h time frame and eventually went above it 2 hours later. - perhaps, it is signalling bullish sentiment now. To me, Moving average level is quite important cos I use them to determine whether a security is in bullish/bearish sentiment. I also monitor moving average 13 and 5 and 0. any other your favourite moving average level?
MA's absolutely provide S/R. I don't concern with why but what and when. I use 9 ema, 30 wma and 90 wma.
20 WMA. All the 50's (WMA, SMA, EMA) and 100 WMA. Moving averages are probably the easiest way to trade. Establish a trend. Then trade the lower timeframe swings.
So you only use moving average to determine S/R ? it does not seem any of your moving average can be used to determine the current sentiment. For example, I use something like ma50 to determine the dominating sentiment.
The following MAs, 20 ema 60 sma and 180 sma and 2 standard deviations up and down in various timeframes.
I should have written...they help define S/R levels rather than provide same. My only interest is tradable signals and my MA set along with price action and a single oscillator across two time frames provide those signals.
How do you establish a trend with moving average? I find that relying solely on moving average to establish a trend is not safe for swings so I also use A/D to find ,for example, dip in uptrend. It gives a reliable signal.
ma60 is one of my key moving average levels too Is there any reason that you use std dev instead of BB?
That's actually a great question. I don't necessarily use a moving average to establish a trend. I'll watch for breakouts and new highs or lows to determine the trend.
It's the same thing, except John Bollinger stole the concept and made it his own so I dont like to give the sob credit.