Are your charts so riddled with indicators that you can’t even see price bars? Do you even understand how they work? There might be a “simple” alternative. Moving averages have been helping traders identify long and short-term trends for decades, and prove that sometimes, the simplest questions have the simplest answers.
Here’s What Our Coach’s Have To Say
Trader Shout Outs
Crude Oil has been 'Rocking & Rolling' recently, and Topstep funded trader Brandon B. is on top of it. He caught a gap filling move and put a solid $1,400 day this week. Keep it up!
Which Moving Averages Do You Watch?
Our Coach's watch a lot of different markets, but the consensus appears to be unanimous when it comes to tracking trend and momentum; simple moving averages work better for longer periods, and exponential moving averages work better for shorter periods.
To quote one of our coaches:
"The 50-day exponential moving average is my line in the sand when it comes to short-term direction or trend. Above there I’ll take on more risk to the long side, and below I’ll take on more risk to the short side. For a shift in sentiment, if the market has been trading above the 50-period average, then I want to see a few price bars close below it before I start changing my tune, then I’ll keep watching to make sure the shorter time-frame averages are crossing over before I start targeting the 100-day moving average."
Pretty standard stuff. If you remember the old adage; 'Keep It Simple Stupid' (KISS), it applies here.