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There are several important rules that must be considered when building a simple moving averages. Let’s consider them more:
- With Flat, better use of moving averages with a large value than usual, because it smoothes out the statistical noise that occur rapid fluctuations in prices.
- The sensitivity of the moving average depends on the length of the moving average, i.e more than its length, the lower its sensitivity.
- A lot of false signals occurs when the moving average is set up with a very small value.
Simple Moving Average and settings.
Weekly chart of prices - 8, 13, 21
1 day price chart - 8, 13, 21, 55 and 89
3-hour chart of prices - 8, 34, 55, 89 and 144
1-hour chart price - 8, 34, 55, 89 and 144
Less than 15 minutes. - 34, 55, 144
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