In this video, we briefly demonstrate how to identify the strength of a market trend based on assessing the direction and patterns of three different moving averages (common technical analysis indicators). This constitutes one element of our clearly defined trend qualifying rules that is part of our swing trading system. Press the “play” button to watch the short 3-minute video below (view full screen in HD mode for best quality):
httpvh://youtu.be/ZdWwYjOyPVo
Although the video explains the initial steps of identifying market trends, there are many more “trend qualifying” rules and filters used in our winning trading system. If you would like to learn more about the detailed rules of our swing trading methodology, we strongly recommend viewing our FREE “Buy Setups” video, which is 40 minutes of extremely valuable and detailed educational material for active traders. The free video can be found by jumping to our Swing Trading Course page and then clicking the link on that page that says “Class 104 – Trade Setups (when to buy).”
What do you other traders think? Do you also use multiple moving average confirmation when identifying trends?
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I have heard of the crossovers before, but I never thought of MA's as "pointing in the same direction" as you put it, for an indicator.
Nice thought. I will have to watch these form now on, even though I am not a fan of MA's
Yes, when the 20, 50, and 200-day moving averages are all in same direction, with 20 above the 50 and 50 above the 200, it is a very quick and easy way to qualify a stock or ETF as being in a steady trend or not. Of course, crossovers are also useful for confirming trend reversals. We keep our trading strategy quite simple, and find it to be effective. Just this alone...buying only stocks that meet this moving average criteria will greatly increase your odds of a winning trade. You may want to learn more about our Buy Strategy in the FREE 40-minute video found at this link: https://www.morpheustrading.com/services/stock-trading-video-course. On that page, click on the link that says "Class 104 - Buy Setups." Let us know what you think.
Cheers,
Deron