Guidebook No. 6 of the Samxon Market Indicator Series. A 14-page PDF guide by Paul Samson (Samxon.ca).

The moving average is the foundation most of technical analysis is built on. Bollinger Bands, Keltner Channels, the MACD and reversion to the mean all start with one. This guidebook explains how moving averages behave, so that every indicator built on them becomes easier to read.

Inside:

• The Simple and Exponential Moving Averages, and how each is calculated
• Where moving averages came from
• What changes as the look-back period grows
• The golden cross and the death cross
• How one-, two- and three-average setups map directly onto the MACD
• The cycle reading, plus a worked example through a full market cycle

The central idea: short averages catch turns early but give many false signals, while long averages and their crosses are late but reliable. Using fast averages for timing and slow averages for the backdrop is how most traders put them to work.

Instant PDF download. For educational purposes only; not financial advice.