IGMFX - Trading with Moving Averages

good evening ladies and gentlemen my name is michalis and i'd like to welcome everybody to tonight's webinar here at igmfx tonight we're gonna be looking at a specific indicator which is known as a moving average and we're not going to look at a specific strategy but instead we're going to look at different ways in which you can incorporate this specific indicator in different ways so depending on your strategy in the way that you personally are analyzing the market and analyzing the price movements today we're going to be looking at how you can use a moving average in different ways in order to benefit your analysis and again we're going to be looking at different options which you have as a trader now throughout tonight's webinar you of course have a different option within regards to if you wish to ask a question because i had a lot of questions through emails since last uh last week's webinar which was nice to see of course so everybody bear in mind that you of course can ask questions either through the go to webinar software itself in which case when you do ask a question it will come straight to me and i will answer the question live on the webinar of course if you don't feel comfortable doing that it's absolutely fine this is my email address you can send me an email at any time of course and i will get back to you remember with uh within 24 hours within regards to whatever it is that you may have been asking also bear in mind that uh after the webinar abram will receive an automatic email with a link to the recording and this goes for every single webinar which you may have been watching if you do want to watch past webinars because today's webinar is actually our sixth webinar and you do want to backtrack and look at the webinars that we've done so far we've looked at price action for example uh market drivers in terms of the price of certain assets uh in terms we've had webinars on the platform within regards to our brokerage and so many different other subjects so if you do want to backtrack and look at different webinars that we have done here at igmfx then by means feel free to go to youtube type in igmfx click on our logo click on videos and you'll see there's a hours and hours worth of educational webinars there so tonight's webinar is going to be split up into a couple of sections the first section is going to look at a quick introduction the introduction is mainly for our new traders which possibly have never watched one of our webinars uh it's just an introduction with regards to myself if you do need my assistance in the future uh to us as a brokerage to trade in general as well then we will pass on to the second section which is going to be looking at trading basics and then the last section the most important section for today and today's subject we're going to be looking at moving averages different techniques which you can use including how to use moving averages in terms of crossovers in terms of trend lines in terms of sentiment lines and so on and so forth so like i said my name is michalis i am the market analyst here at igmfx a bit about my background i originally started off as a financial advisor in the uk that was five years ago now and i did it for approximately five years just over five years also i do hold a cmap license this is a uk based uh license um and i've also got the psychic advance as well which is the certificate the same certificate for here in cyprus which is where our head office is uh bear in mind as well if you do want to go to psychic where the seisek website and go on the list of approved persons also bear in mind that when you're looking at the list of approved person you will see my name there uh also i've been trading for eight years coming up to nine years within a month or so and also i've done many seminars i've worked with many lecturers uh fun seminars for example in uh the uk and cyprus in greece in turkey in south africa romania ukraine serbia so many different regions around the world as well everything of course based on the financial trading market now as a market analyst the main thing i want people to understand because it's nice and of course a little bit of background with regards to myself and of course within regards to the people you're speaking with here at however the main thing i want people to know and understand about this specific slide is that you can get into contact with me within regards to anything which you need as a trader so if you need assistance for example within regards to strategies uh trading techniques with maybe something specifically happening in the market it could be for example as well risk management trading plans exposure management and so on and so forth as long as it's related to trading and the market then of course this is something which you're more than welcome to get into contact with me and i'm more than happy to assist you of course a quick introduction for us as a brokerage uh the main thing i want people to get from this specific slide is uh first thing and most important thing is that we are fully regulated we are regulated by cysic which is a european regulator and of course because we are regulated by european regulator we are following all european regulations such as methods such as the gdpr and so on and so forth the great thing about being regulated and psychic is that if there is if there is an issue and you do want to speak to us about an issue then of course because we are regulated we will listen and we will correct anything uh if there is anything alongside along that line uh we of course have our very own platform which is available online and also by mobile we also have the mt4 which we provide for free the mt4 also known as metatrader4 is the biggest trading platform in the world so that is enough another benefit as well also bear in mind we do weekly webinars we do webinars every single week without fail it's always up at the same time on the same day it's always at two sorry six o'clock on tuesday and that is six o'clock uk time as well so these are the main things really i want everybody to get know and understand within regards to igm effects and you of course have your account manager you have the support team you of course have me as well for those of you who do want to go a little bit more advanced potentially within regards to anything in terms of your trading and the markets investment risk everybody should be aware that here at igmfx we are dealing with investments when we are dealing with investments ladies and gentlemen there's always a risk to the capital you are invested it does not matter what type of investments you are looking at it applies for every single type of investment there's always a risk to the capital that you are investing it doesn't matter if it's at forex if it's the stock market uh if it's at the commodity market cryptocurrency market whatever type of market it may be so this is why we've got this information on our website this isn't something which i personally have written myself is on the website it's also on every single page on the website at the bottom of the page so there's no excuse for not reading it read it make sure you understand it make sure you're comfortable with it before proceeding to a full investment and of course if you do have read it and you still don't understand it's not an issue of course your modern work can speak to our support team which is available via live chat alternatively you're more than welcome to get into contact with me and of course we'll make sure that everybody is fully aware that last slide before we actually get started with today's uh subject the content in this video is for informational purposes only and do not constitute investment advice igmfx assumes no responsibility for any potential errors inaccuracies or missions in this material nothing in this communication contains or should be considered as containing an investment advice on investment recommendation or solicitation for the purposes of purchasing sale of any financial instruments any views or opinions presented within this material are solely those of the author and do not necessarily represent those of igmfx unless otherwise specifically stated on the webinar what i'm trying to say is part of this slide ladies and gentlemen is very simply that here at igmfx we do not give investment advice uh whether it's trading advice market advice investment advice financial advice we will not give it so bear in mind when you're speaking to your account manager when you're speaking to the sales team when you're speaking to myself we will not give trading advice tonight's webinar every single webinar that we do on a weekly basis are here for educational purposes and there are there is a great educational tool because of course every single week we'll be looking at different types of analysis we'll be looking at different types of trading techniques risk management and also different types of ways of analyzing the market so let's start looking at the trading basics the first thing i want to look at is cfds now everybody should be aware that here at igmfx we are investing and trading cfds because i have a few traders throughout the week uh send me emails and questions in regards to different elements of cfd so this is why i thought it would be very important to put it as a first note on tonight's webinar see if these ladies and gentlemen stands for contracts for difference and what cfds do is they allow you to speculate and trade specific movements in the market uh without having to actually own the asset itself so what do i mean by not having to actually own the assets itself a cfd is like i said a contract known as a contract for difference known in the financial market as a derivative this contract has a price and the price will mimic the price of the underlying assets what what am i exactly referring to you could be looking at for example apple stocks in which case the real apple stocks for example may be priced at let's say a hundred and thirty at five dollars per stock now when looking at the cfd and i do apologize for my handwriting because i'm using a computer mouse uh when we're looking at cfds the price will be the exact same and there'll be no difference between the price when the actual underlining stock moves itself the price moves the cfd will mimic the price so no matter how it's moving they will mimic each other so why exactly would somebody look to trade at cfds instead of actually trading the actual stock itself bear in mind the same applies even if you're looking at currency pairs even if you're looking at commodities or cryptocurrencies the question which i'm sure a lot of people are asking is why would people look to trade a cfd instead of actually trying to trade the assets itself and safety trading of course is not for everybody however is extremely popular and there of course is advanced digital trade in cfds the first reason why people would trade cfds is because they're a lot easier to get their hands on this is the first thing to note uh also when uh let's say if you're taking stocks up for example people of course are looking for looking at the charts and price of the stock and as it forms a trend then people start to get interested in uh trading at the price movement the issue is that at this area here when the trend is forming sometimes it can be extremely difficult to get hold of that investment why because there's such a high demand for that specific stock and even if you are able to get involved in that specific investment it can be slightly expect expensive uh however when you're trading cfds it's very quick and it's very easy you create an account online you verify they can you can verify within a matter of minutes as long as you've got the documentation available which is very simply just id and proof of a proof of address and then you can trade straight away now the other benefit is let's say for example when the price is higher and you made your profits and now you want to exit the market sometimes it can take a while to get out of the investment whether it's because it's become so expensive not that many people are interested in investing in it for example there may be a stock market crash for example in which case you're highly unlikely to find somebody who's willing to get involved in that investment and be willing to purchase it from you unless they're of course going to offer purchasing it at a massively undervalued price the good thing about cfds is again you don't have to go through that process it's at a click of a button you can very simply exit at the point in which you choose so there's lots of diff different advantages to trading cfds uh compared to actually purchasing and trading the actual assets itself uh the main thing i want people to take from this slide is what cfds are you are not physically buying the assets itself you are trading a contract for difference a cfd which is mimicking the price of the actual underlying assets so hopefully that makes sense for everybody uh i've got a question here from a gentleman who says what possible disadvantages are there to trade in cfds when comparing with the actual asset to be honest the next two slides i think are going to answer the question uh for you so let's look at the next two slides and then of course i'll mention some extra advantages and disadvantages to trading cfds leverage so this is where a possible advantage and disadvantage can come into place leverages non-legs engines as a double-edged sword a double-edged short basically means it's got its advantages and it's also got its disadvantages leverage by the way ladies and gentlemen is something very unique to the cfd market so this is again another reason why a lot of traders come to trade as cfds because they're interested in leverage now leverage is when the broker is allowing you to control more capital than your actual investment now this may sound like we're lending you money uh however we are not lending you money in any way shape or form uh bear in mind you can never own oh us as a brokerage at capital your account can of course never go into a minus a better than mine because of course we are never lending you any capital what we are simply doing and this is what leverage does uh actually is increase your money in power so let's look at an example so everybody fully understands if you're making an investment of one thousand dollars let's say you had no leverage if you had a stock worth one thousand dollars you can of course only buy one of those stocks because you've invested one thousand dollars the stock is worth one thousand dollars so of course that comes to an equal uh one stock however when you have leverage and leverage will always look like this will be two figures it'll be one and then a larger figure so here for example we've got one to one hundred this means for every one dollar that you invest we will increase your buying power by 100 so this actually means because you've invested one thousand and you have a leverage of one to one hundred you actually have a buying power of one hundred thousand dollars so if you're still interested in buying that stock which is worth one thousand dollars you of course can actually buy 100 times more than that because you have a leverage of 100 one to 100 of course you can still you still have the option of buying just one stock it would just be 100 times cheaper okay so bear that in mind so why exactly is there disadvantages and advantages to trading using leverage the first thing that you should note is when you're trading using leverage and the market is moving in your favor it is a massive advantage why because you're trading you're earning more and you're earning it faster because of course every market movement is being timed in a sense by 100 at the same time when you're trading and the market is moving against you the same thing applies which is of course why it's known as well as having disadvantages so bear that in mind it massively depends on whether the market is moving in your favor or against you another advantage is of course at the fact that when you are trading you require less capital to trade a specific volume amount so better than mine as well so overall of course we've got leverage which has its advantages it has its disadvantages but of course whether you're choosing to trade with leverage and the amount you're choosing to trade is completely down to you so for example you may be very risk averse and you have a very low risk appetite you may be choosing to trade with a smaller leverage of let's say 1 to 20. you may be the completely opposite and you have a very high risk appetite which you may be choosing to trade one to 100 for example and so on and so forth these are just very basic examples here so hopefully everybody now understands a little bit about leverage the concept of speculation this is another massive benefit and again another reason why people do come to trade at cfds when you are trading the physical underlying assets itself of course it's got many advantages and what people are trying to do is again when they're looking at the price and the charts and then looking at specific types of movements they want to buy at one price and then sell at a higher price now of course the difference between the two is going to be the profit however what is the concept of speculation the concept of speculation ladies and gentlemen is having the option not only to speculate that the price is going to increase in value but also having the option to speculate that the price is going to decrease in value so you've got either or between the two so of course you can speculate at this point price will continue to increase or you can speculate that the price will continue will change and start to decrease in value now again this is something very unique to trading at derivatives when you're physically buying assets itself you of course can only make profit from the assets increasing in value with cfds you have the opposite you got the option to speculate in either direction you've also got the option to open both a buy trade and a cell trade in which case it's known as hedging so technique used at times by traders another thing to bear in mind is when you're trading uh currency pairs because i had this question as well at buy trade that during last week's webinar you will notice there's always two assets you've got your quote currency and you've also got your counter currency as well so notice that you've also got always got two assets now let's say for example if you use the euro usd which is the most traded currency pair uh in the world so let's say here we've got the euro usd and something to note when the price is increasing in value like so it means that that first currency the exchange rate for one euro is increasing against uh the us dollar so it basically means that the euro is increasing against the u.s dollar whereas when the price decreases it could be that either the euros decreasing in value or that the u.s dollar is increasing in value so bear in mind when you're seeing downward movements on an asset like this it doesn't necessarily mean that the euro is decreasing in value the euro is just decreasing in value against this currency itself so it doesn't necessarily mean the euro is decreasing in value against the market overall so bear in mind you have to keep into consideration both currencies not just the first currency you've got to look above and bear in mind the movement may be possibly in reference to the euro or in reference to the counter currency could be in reference to both of course as well so bear this in mind so now let's start looking at different ways of looking at moving averages and how you can use moving averages what moving averages looks like uh have in terms of the indicator itself and also going to be looking at different techniques which you can possibly be using as a trader so just very quickly for everybody to be 100 aware this is a moving average here so we can see an orange line here on the screen this is what is known as a moving average so uh what exactly are moving averages used for what everybody should be aware of is normally moving averages are used as a trend indicator there's different types of indications there's indicators which may be indicating a specific volatility level volume level whether an asset is overbought or oversold in very basic terms for example over price under price for example there's different types of indicators moving averages come under the category of indicators for using to trade trends now of course you can be looking at moving averages as a crossover or you can be using them as a trend lines as well so we're going to be looking at different options which you can possibly have in terms of using moving averages a couple of things to note though when you're using an indicator the indication is only a signal it's only an indication it says it in the word itself it's not 100 so bear that in mind this is why i've said on a couple of webinars it is a good idea to use two free indications and make sure that the indications themselves are not conflicting with each other so for example we may be using at let's say a moving average like we are using during today's webinar we may be using a stochastic oscillator for example and also using uh let's say an rsi for a wave analysis for example when you're looking at the free indicators it's a good idea number one to look at them and analyze them on different time frames i tend to use the lucky number three so for example uh looking at three indicators on three different time frames again for example that may be a 15 minute time frame a four hour time frame and a daily time frame so that way it's gonna cover short medium and longer term and then you've got your three different indicators what you want to see is all indicators on all time frames giving you the same indication they should all be indicated in the same type of track you do not want to be looking at a trade where you've got the moving average yes giving you an indication to buy but then the stochastic oscillator and rsi are giving you indications to sell because then of course that is when your analysis is conflicting of course you do have the option of course to buy just make sure that there is a specific reason why you are choosing to buy in a situation where you're looking at three indications and all three of them uh sorry two of the three are giving an indication of a completely different opposite movement in the market i've got a question here what is the best indicator which you can be using uh to be honest with you it's a matter of opinion there's not a specific best indicator what i will say is moving averages bollinger bands stochastic oscillators and rsis tend to be the most popular amongst retail at traders if you do need extra assistance in terms of your analysis you can go to our website click on chart analysis and we do have actual charts analysis with signals with target prices with alternative movements with indicators or on our websites and pretty much it's all done there for you of course you don't want to be trading as a robot in which you just look at a signal and a chart analysis and you click and buy so you of course want to learn and do some analysis yourself this is my presentation it's a good idea to know why specifically you're looking to trade and open a specific movement in the market so let's understand exactly what moving averages are also bear in mind depending on the platform or depending on the webinar uh on who your speech and who you're speaking with and moving average is sometimes known as an n a there's two different types of moving averages mainly used moving averages there's hundreds of different types of moving averages but the two main used are smas also known as simple moving averages and emas which are known as exponential moving averages uh moving averages like i said appear on the actual charts itself so it's not like an rsi or stochastic oscillator where it appears beneath the charts it will actually appear on the chart on the price movement itself so when we're looking at moving averages they're quite easy to understand in terms of their overall definition a moving average is just an average price movement over a specific period of time so you may be putting in an average price movement of let's say five days of 25 days of 50 days 100 days 200 300 400 it depends on what type of moving average you personally are looking to put on your charts when you do go 24 go to insert click on indicators click on trend and then it will come with a drop down and you can click on moving average as your indicator when you do choose moving averages the first thing we'll ask you is of course the color of the line and the indication which you want so for example here you can see i'm using two different colors and this is just so you can differentiate between two periods and also it will ask you what period you want the moving average to be in reference to so very simply speaking moving averages are just an average price movement which is going to appear on your chart and i will explain exactly how you can use it as an indicator so what is the difference between an sma a simple moving average and an ema an exponential moving average a simple moving average ladies and gentlemen which is actually this green line here at the bottom or in the screen in the image here at the bottom a simple moving average is very simply just an average price movement and it's not taking anything else into consideration now an exponential price movement uh moves faster so also notes that an sma is lower than an ema an exponential price moving average is still giving you an average price however is given a stronger uh indication stronger indications and um importance to the more recent days so for example if you're putting a 10-day exponential moving average let's say it's going to give a greater importance to the last three days for example okay so this is what i'm referring to in terms of yes it's still giving you an average price however it's going to give greater importance to the more recent days so let's look and see how we can use moving averages in order to assist us with trends uh specifically speaking trend lines now this is an actual chart which i've taken uh from mit for today is the british pound against the us dollar it is on a daily time frame and i'm using a 35 day exponential moving average which is this orange line here so i'm going to give you a couple of seconds just to quickly look at at this screen and see what exactly you can note by this moving average and again bear in mind this this is the british pound against the us dollar it is a daily time frame of course what i would be looking to do is of course do this analysis of different types of time frames and of course also incorporate different types of indications as part of my overall analysis however this is a great way in which you can use moving averages generally speaking as part of your analysis so what hopefully people can see is that this moving average is given as an indication number one of the trend and number two of the regression channel of the trend itself so the fact that the price movement is above in this area here the fact that it's above is straight away given us an indication that we're looking at bullish movements so you can use uh moving averages as a sentiment line so if we're looking at the price being above the moving average and straight away we're looking at strong price uh sentiments bias sentiment when it's below then of course we're going to start to look at a possible change of um bearish sentiment so seller sentiment so again what we can see here is it is helping us with the overall trend but also what you notice is that when we do get the price have a corrective wave so for example here where i've drawn also we have another one here as well another example here we can see it's given us the exact point more or less of course we're looking at that moving average as a region so we can see here it has actually moved slightly below but on each occasion even here we can see it's bounced back up at this region here we can see it's giving us the area of the price being oversold so bear in mind that when we're looking at trends the trend the price movement is going to look something like this it's not just going to look like a straight upward line in which case it will be very easy to trade it's not you're going to have what are known as impulse wave uh corrective waves also sometimes known as retracements and trend movement so of course what we want to ensure is that we're not going to be trading at these areas here and instead going to be trading at these areas so this is why we've got our moving average which is the trend line here so i've got a question and uh the question is how do i know exactly what period to put on the moving average uh to be honest with you this is something you're going to develop over time as you're analyzing the market uh the best thing to do is look at different types of moving averages different periods test different periods see how periods are working when looking at the child so for example i can see this period is working very well so i'm quite comfortable with a 35 day exponential moving average whereas if the period was somewhere down here for example then i know that the movement averages moving too slow and i need to lower at the figure to bring it straighter and closer to the price movement and therefore give us a better indication of the oversold area and the continuation of at the trend of course again if the price movement was let's say here for example that was the moving average and again that's not a much distance because it's neither helping us establish an oversold or another water area we of course can have a different types of moving average we can have maybe a moving average on a different figure which is going to create a movement up here which case is also going to help us with when the movement slightly becomes oversold so this is an option of course as well another example here something which i want people to note because of course if you look at the previous slide if i go back to this slide here what you notice is there is times where the price does cross now some people may look at this across and think to themselves it is an indication of a downward trend and of course it can be potentially an indication of a downward trend i'm not saying not to necessarily use the tanata indication however there is a possibility that of course you may get an area like this in which case it crosses over upwards like we see here the movement doesn't last it loses momentum and then it moves back in the opposite direction so of course that is not the type of trait you want to be as seen so an option which you have is when you get a crossover wait for the movements to be established to lose momentum and then gain momentum again before trading so what exactly do i mean by that so we can see it's crossed up significantly so this is not just a fake breakout or false movement in the market it is definitely quite a large impulse wave that we can see here then i'll wait for it to lose momentum in which case it's lost momentum here for example because bear in mind of course every trade uh for every trend we'll lose momentum and have what is known as a pullback at some point and again then what i do is i wait for it to pull back and see if again it finds momentum at our moving average what we do see is that it dies so instead i'll look at a potentially trading in this direction the market uh if i've missed that wave then again i'll wait for the loss of momentum here and as it click it hits this moving average again then again because that is my trend line i'm gonna look to see if it builds momentum at that point here so again we could have traded there and traded the upward movements because it's quite a strong upward movement the only thing i would say is when you're going to start to trade the second bounce back or even the third or even the fourth bounce back especially if you're going to be looking at the third and the full bounce back here uh make sure you're not purchasing uh at number one a resistant level in which case you're gonna get a stronger and you can see how this resistant level came into effect here so this is the reason why i'm saying it uh in which case you're going to get in greater danger of there being a resistance in the movement against you and also make sure the price is not overbought in the medium term then you've got a crossovers this is a different technique which you can be using we're still looking at uh using uh moving averages so bear that's in mind uh ladies and gents what happened this time we're not going to be using uh very simply just one moving average instead we're going to be using two moving average now crossover strategy there's different ways in which you can use crossover strategies you can have two moving averages you can have three you can have four you can have five there's many different ways in which you can use moving average crossovers however we're going to use look at using the very basic way in which you can use movement app excuse me which you can use moving averages so like you can see on my screen in the image on the right here you can see that we have a slow moving average and also a faster moving average so what you tend to see is the fast moving average tends to move uh quicker with the price movement whereas the slower moving average tends to lag behind so crossovers are normally constructed by a slow moving average such as the simple moving average let's say over a period of 15 days and at the same time also have a fast moving average for example could be an exponential moving average over four days so something to note here uh the more data which the assets sorry the indicators can take in depends on the period if you're going to put 15 days instead of four days it's gonna take 15 days worth of data into consideration now because of that it's gonna move a lot slower with the trend like so for example whereas if you're using let's say a four day moving average it's likely to move a lot quicker with the price movement like so because of that we get crossovers so like you can see here we've got different crossovers now when you look at the charts here for example we can see the exact same thing happening so let's look at the actual nexus slides in which case we're going to look at different ways of using this indication in order to trade generally speaking this is actually a great way in which you could look to trade trends what i will say and i didn't mention this on the previous slide which i didn't actually read but i'll mention it now is that when you look at crossovers there are great indications and i mean a great indication when you're looking at a lasting trend so for example here we can see it's a very nice lasting trend whereas when you're looking at a trend which is going to lose momentum very quickly so for example when the market is looking for example something like this then uh moving averages are not going to be so easily used so bear that in mind so i'm going to use different types of assets on different time frames just to show you how you can use this overall so here we look at netflix stocks we're looking at a one-hour time frame uh what we're looking for is crossover so bear in mind here i'm using a 11 day simple moving average which is this green here and the three day exponential moving average which is this orange here so we can see across over here an upward crossover and because it's an upward crossover it is an indication that the price is going to move up in a short to medium term so what exactly does happen we can see because of this indication we can see the price moved all the way up to here so for example when we have the indication we're looking at a price of a 512 at dollars and moved all the way up to approximately let's say 554 dollars for example so we can see here it's quite an experiment it's quite an exceptional movement here that we can see and we saw and have the indication for this movement from this specific indicator here something to note here is where we had the indicator not that we had movement for us and also against us so look at this bracket this is the bracket of volatility that we have to have to allow the mark it to move in order to benefit from this overall price at movement bear that in mind we also got a crossover downwards here in which case the price did move downwards all the way down to here so that's quite a good indication as well another crossover we can see the price move at maximum up to here cross over here price move downwards at that level there as well let's look at a different example this is apple stocks and this is a different time frame we're looking at a six hour uh time frame uh which you do have an option of on metatrader5 uh here we can see we've got a couple of uh moving averages uh crossovers we've got a crossover here and across over here this first crossover lost momentum very quickly so it wasn't a successful crossover there i have in the next crossover it did actually move downwards so that was quite nice at sea wasn't a massive movement however it was uh pretty much enough movements for most traders uh is traders especially who are trading short to medium term we've got another crossover here this is a massive movement in the market to be honest this movement is very very big especially for cfd traders however you do have an option to trade the whole movement you could have exited slightly earlier depending on you and your personal risk appetite and potential profit taking another crossover here again it's quite a large movement here as well across over here got a movement all the way up to approximately this area here crossover down here massive movement down here move down to here and here crossover there moved up to here another crossover and then moved down to here as well so we can see we get multiple crossovers here again don't forget we're not only going to be using the crossovers as a way to understand how to uh move and trade within the markets not just uh you know we've got an upper crossover so straight away i'm going to enter a buy you've got to look at your overall analysis look at different indications and look at our chart analysis on our websites and our signals and analyze what has happened in the market is there a reason why the price is increasing if there's not do i really want to be looking to trade this price movement even though i get an upward crossover so there's a lot of things to think about and evaluate before deciding to open a specific trait so this is a way in which you can use the trend line as a way as well alongside of the moving averages so for example here we've got our blue line here which is a 30 uh seven day exponential moving average so simple moving average 37 simple moving average and we can see is working here as a trend line a sentiment line you can see the sentiment changes uh in this area here in which case it starts to work uh as a bearish trend line then that changes in this area here and it starts to work again as a a bullish trend line so this is how you can use both at the same time so we can see here for example let's say we've got uh it's the price hidden at this area here so this is our first indication at one point here then we got a crossover upwards so that is our second indication of this upward movement in the market it's moved up it's crossed over back down in this area here but then it's hit this area so we are cautious about trading downwards because we're not cross below this uh blue moving average it crosses back upwards this is arguable whether it was a successful move uh indication or not i would say it wasn't because it collapsed very quickly uh we've got a downward crossover as well again it didn't manage to cross downwards on the bloom of an average again i'm not willing to trade downwards uh then we've got another crossover this was a great indication here again we got downward crossover not taking into consideration why because we're not below the blue moving average upward crossover we can see an upward movement there and so on and so forth we've got another crossover upwards here this is something potentially i wouldn't be looking to enter because we're not above the blue moving average now this area here for example when we do get above the moving averages at that point that ideally i would be looking at to potentially uh trade what you can also do is use uh price action as well so we can use our price action here which we're gonna be mentioned a couple of slides ago uh sorry a couple of webinars ago we can use that as an indication hit straight upwards for example so we've got lots of different uh indications that we can potentially use now i had a question earlier on about two slides ago i didn't ignore you it's just that the answer was going to be uh answered the mr slides here uh the question was what different where indicators can i use alongside moving averages so these are a couple here that you can take into consideration here we've got what is known as a moving average a moving average has an upper dotted line which is this area here and a lower dotted line now when they cross these areas here there are an indication of overbought and oversold so these when it's above for example here where it's below like for example here these are indications of overbought and other sold so ideally based on overbought and oversold you don't really want to be buying in both areas unless there's a specific reason for you doing so also you've got this middle uh neutral area here which is this dotted line here now of course when the price is above like for example in this area here is that area that you want to be looking at bullish movement and whereas below is that area you want to be looking at bearish movements so again you can use this as part of your moving average so for example we've got a crossover here so that's an upward crossover and it's also crossing over into the bullish here on the moving average and it's not overbought so this is a good indication here another indication here as well for downward movement again it's crossing over in this area here downwards into the bearish movement so that's a good indication as well and it's not oversold so again this is a potentially good area that you can potentially be trading as well uh where you don't want to be trading is this area here why because it's that area that we the price is saying is overbought and we can see it's in this area that it starts to lose momentum and collapse areas that you don't want to be trading downwards is this area here for example and we can see in that area again the price did move in the opposite direction this is another example as well and here we're using stochastic oscillator uh also known as s our indication so this is at this indicator here uh it's using crossover so we can see here we've got crossovers which are used in the same way if it crosses off downwards it's down with indication crosses over upwards and upward indication and again it's also giving indications about both and oversold so you can use this similarly in the same way as crossovers so for example when we've got across over here let's wait for the crossover on the stochastic oscillator when we've got both this is a good area to trade uh then we've got a crossover downwards let's wait for the crossover on the moving averages and then again you've got an indication uh to trade downwards and ideally what you want to be seeing is the crossovers are the same so you don't want to see that one of them is crossing over up and the other is crossing over down or one of them is crossing over up and the stochastic oscillator is saying is overbought so again you want them to coincide you don't want them to be conflicting with each other uh moving averages with price action we looked at price action a couple of webinars ago about two weeks ago uh a great tool which you can use in the market that's a great tool especially if you're looking to analyze price movements and trends in terms of actual price uh movement uh however what i would say is if you are interested in price action actually go to youtube type in igmfix and you will see a webinar there which is one hours worth of webinar which is solely looking at price action you can use price action along cross alongside crossovers but for example you've got a crossover here uh instead of opening straight away we can see this is our price action indication here so i would wait for crossover here ins instead of opening straight away at this area here and i will do that because that is i want both of them to be an indication in terms of upward movement now this would have been a massive benefit why would have been a massive benefit because if i did enter at this area very soon the price would have collapsed against me whereas if i waited for the price action here we can see would have been a much better trade again we can use our price action indication here price action indication here as well price action indication here when we're trading downwards same thing here as well and so on and so forth we can use it in this area as well so again you can use significant pricing and moving and price price action uh methods as well alongside uh your moving average crossovers and sentiments and trend lines as well so that brings us to the end of today's webinar uh i'd like to thank everybody for watching tonight's webinar if you do have any questions feel free to get into contact with me at any time uh trade safe trade responsibly and hopefully we'll see you very soon on one of our web on one of our webinars in the meantime have a lovely evening and goodbye

2021-05-24 15:41

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