The “length” or number of reported time intervals of the MA calculation affects how the moving average is displayed in the price chart. The shorter the “length”, the fewer data points are taken into account in calculating the moving average, which means that the moving average remains closer to the current price.

This reduces the quality of the display and may provide less insight into the overall trend than the current price itself. The longer it is, the more data points are included in the calculation of the moving average, meaning that any lower single price can affect the total average.

If there are too many data points, price fluctuations may become “too smooth” so that you can not detect any trends! Under both circumstances, it may be difficult for us to determine whether the price direction will change in the near future.

For this reason, it is important to choose lengths (or intervals) that provide price details appropriate to your trading period. Now, you are probably saying to yourself, “Hurry up! Let’s get to the point faster. How can I use this cove to trade? “

In this section, we first need to explain the two main types of moving averages:

1. Simple
2. Exponential

We will also teach you how to calculate them and tell you the pros and cons of each. Like all courses and texts on the site, you first need to know the basic concepts. Once you have mastered the skill of carrying a copper ball, we will teach you the different ways to use moving averages and how to integrate them into your trading strategy.