4 Trading Strategies with Moving Averages 📈

Moving averages (MAs) are popular technical analysis indicators that smooth price data over a specific time period. They can be used in trading strategies to identify potential trend reversals, entry and exit points, support/resistance levels, and more.

This article covers various trading strategies with moving averages, how they work, and the insights they can offer

2) Moving Average Strip

A moving average strip is a combination of multiple moving averages of different lengths. A strip can consist of four to eight SMAs, although the exact number can vary depending on individual preferences. The intervals between the MAs can also be adjusted to suit different trading environments. For example, the default strip consists of four SMAs with periods of 20, 50, 100, and 200.

This trading strategy involves watching the moving average strip expand and contract. For example, a widening band, where shorter moving averages are moving away from longer ones during price increases, indicates a strengthening market trend. Conversely, a narrowing band, where moving averages are converging or overlapping, indicates a consolidation or pullback.