INTRADAY Strategy an example is provided by the strategies that are based on the moving average. The vast majority of platforms integrated moving averages within their own graphics, so this opportunity is at hand for anyone.
Moving Average: 50
The moving average is represented as an irregular curve in which each point indicates the mean that prices have clocked in a well-defined number of previous periods. It “mobile” calls for, as easy to guess, the average change from period to period.
Thanks to the relationship between the moving average and prices, you can get the signals by which orientation of its trade. The simplest strategy, at least for those who want to trade intraday – then uses an average fastest approach – as the moving average of 50 periods. Each point on the curve, then, indicates the average over the previous 50 periods.
The position of the moving average compared to the price line clearly indicates the extent of the trend in progress. When the first travels under the second, the trend is bullish. When is the second to travel in the first, then the trend is down. This implies that this method can not be used when the trend is lateral. However, this is not a defect: good part of the strategies are invalidated by lateral movements.
However, the trade intervenes when the moving average and the prices are crossed (as it happens in the figure). From this point of view, the moving average is regarded as a support or on resistance.
Specifically, when the price line intersects the moving average from the top down, the signal is bearish, then, at least for the day in the running, it would be good to go in short.
Conversely, if the contact reaches from the bottom to the top, the signal is bearish. Obviously, the moving average is not enough. And ‘standard practice to use at least two indicators at a time, so you have a signal received confirmation!!!!!!!!!