How to Use Moving Averages to Analyze and Trade Futures
This article on Moving Average Strategy is the opinion of Optimus Futures
If you’re not familiar with moving averages, here’s a quick demonstration. Let’s imagine that a (hypothetical) commodity ends the day closing at the price of 20.00. The next day, it closes at 22.00. If you average the two prices, you get 21.00 as the 2-day moving average. On the third day, it closes at 25.00. If you average the last three days (20+22+25 divided by 3), you get a simple 3-day moving average of 22.33. It’s an “average” that “moves” as prices change.
So, how can this help you trade futures? A moving average strategy can help you to not only identify the “average” trend, but also “trend strength.” In
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