What is the 50 MA? How does it work?

The 50 MA, like all moving averages, calculates the average value of the price over a period of time from the last candle to the past. Thus, the MA 50 is the line showing the average price of 50 candles or earlier, on the daily frame, it will be 50 days. The price at which the 50 MA averages will be the closing price.

Here's how you add the 50 MA on tradingview:


After adding MA, you enter the parameter settings to adjust to the period (period) is 50.

MA 50 - Use to find entry opportunities

Many traders rely on support and resistance to find entry points, I am one of them. However, in these trends, what do you do?


Price never retested support, and so it is very difficult to find entry points based on support, so we will stay out for a long time, until we enter at the moment when the market reverses. direction.

When you encounter such trends, you need to find a new type of support and resistance, and that is when the 50 MA comes into play:


Notice that the price did not touch the horizontal support on the chart but did touch the 50 MA many times, creating a very nice entry opportunity at the test points. Note that the price does not necessarily touch the MA exactly, it can be close to or slightly exceeded, because the MA Line represents an important price area, not an exact price.

Every time the price touches the 50 MA in the trend, you just need to find a pin bar, fakey or a candlestick pattern showing a reversal is enough to enter the order. The 50 MA is a very nice dynamic support and resistance.

MA 50 - Use to surf the long wave

When surfing the long wave, many traders are stopped out (exit) after only a small correction of the price. Because they moved the stop loss too close to the price.

It's like chasing a girl, if you hold her too close she will run away. But if you give her space, there is a higher chance of winning.

Let the market have space to "breathe", to freely fluctuate as long as the market still respects the trend structure, hoping to surf the longest waves. And the 50 MA is a great way to trail a stop.


You can move the stop loss 10-20 pips away from the 50 MA, when the price touches this level, we will exit the order.

MA 50 - Used to filter high probability reversals

When trading reversals (catching the top and bottom), timing - timing, is the most important. If you enter too early, you will easily get SL, if you enter too late, you will miss a long wave. Therefore, the 50 MA can be used to filter out the highest probability reversals, and also the time of entry.

If you want Sell to top in an uptrend, wait for the price to close below the 50 MA before looking for a sell opportunity. Conversely, if you want to buy to catch the bottom in a downtrend, wait for the price to close above the 50 MA before looking for a buying opportunity.

Just the price closing above or below the 50 MA also shows that the momentum is strong enough to find a Buy sell opportunity, because if you buy when the price is below the 50 MA, or sell when the price is above the 50 MA, the chance to win. very low, if not certain to lose.

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