TradingwithRayner presents:

Moving
Average
Indicator
Checklist

A quick checklist to using the

moving average indicator like
a pro
Moving Average Indicator
Checklist
Rayner Teo

How to use moving average to trade with the trend

If the price is above the 200 EMA and 200 EMA is pointing higher, then the
market is in a long-term uptrend (of your given timeframe).

And... if the price is above the 20 EMA and 20 EMA is pointing higher, then the
market is in a short-term uptrend (of your given timeframe)
How to use moving average to identify value on your
chart
If you’re trying to trade long-term trends (on your given timeframe), then the
200 EMA would suit you.

If you’re trying to trade short-term trends (on your given timeframe), then the 10
EMA would suit you.

Personally, I use the “space” between 20 & 50 EMA to define the area of value.
How to use moving average to set your stop loss
When the market is trending, price tends to bounce off at dynamic SR (which is
an area of value).

You can think of it as a “barrier” that prevents the price from going through it

Thus, if you were to set your stop loss just beyond the dynamic SR, wouldn't it
make sense?

Your trade will be protected by the “barrier” which reduce the likelihood of your
stops being triggered.
How to use moving average indicator to better time your
entries
If the market “overextended”, then chances are, it will pullback towards the MA.

Thus, if you’re looking to enter your trades, you’ll probably get stopped out as
the market retraces against you.

So…

If you want to better time your entries, look to enter your trades at an area of
value (like dynamic SR), and not when it’s far from the MA.
How to use moving average indicator to ride massive
trends
You can use the moving average indicator to trail your stop loss and ride massive
trends.
How to use moving average to identify the best markets
to trade
Step 1: Pick the markets which are within the same sector.

If you’re looking at indices, then compare markets like S&P, Nasdaq, Dow etc.

If you’re looking at USD, then compare currency pairs like AUD/USD, NZD/USD,
USD/CAD, USD/JPY, EUR/USD etc.

Step 2: Plot the 20 & 50 EMA on your charts.

Step 3: Compare the steepness of the MA. The steeper it is, the stronger/weaker
the market
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