Moving averages are a quick indicator that helps you get an assessment of a market trend, both short-term, medium-term and long-term. So Moving Average is a very useful indicator for day traders who want to follow the short term trend of the market.

For day trading, traders need to make quick trading decisions. The moving average is an indicator that helps traders quickly know which side of the market to trade on.

For example, if the price is above the Moving Average, you should prioritize buying up and vice versa, if the price is below the Moving Average, you should sell down. The right question for now is, which moving average should a day trader use best for their trading strategy?

As you all know, if we do not use the correct role of indicators, combine technical indicators with bluff, we cannot have good trading results.


So it can be said that choosing the right moving average for day trading is important. What kind of moving average should a day trader choose, and how many cycles should it be?

We have moving averages such as SMA, EMA, WMA, ... with many cycles for traders to choose from. So how to know which one is best, hopefully, the answers below will help you find the right average for your strategy for the day.

For intraday breakout traders, the best moving averages should be the short-term moving average. Why is that?

Because you trade breakout often will choose areas of cumulative price sideways or little volatility. Thus, the beginning of the session will be the ideal time for trading. Because price volatility in the Asian session is usually low and in the European session, there may be a breakout for traders to participate in trading. Short-term moving averages help traders keep track of price action on low timeframes, which can help traders avoid false breakouts.



Day traders should not use large period moving averages such as the MA50 or MA 200, which will make price action more unpredictable and more likely to be subject to noise.

Here, a day trader can use a 10 period simple short-term moving average (SMA). Cycle 10 is a good cycle for a day trader that is neither too big nor too small. Getting price action, furthermore, the 10 period moving average is also very popular with fellow traders.

However, it is up to your trading style to choose, but for day traders we should choose the slightly small periodic moving average to ensure a close follow the price action.

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