Best Moving Average Setups for Swing Trading

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Below you will find significance of the moving averages and their operations in a specific time frame in Technical analytics. 

The technical analytics introduce the moving averages & timeframe for the right judgment of buying/selling stocks, market trends, entry or exit positions. 

The analytics involve study of price variations on the candlestick patterns. 

You can develop candlestick patterns depending on your selection of the time frame domain ranging from a  few minutes to a few months. 

 Different Types of Moving Averages/Timeframes

Timeframe:

Time frame in technical analysis is defined according to the analytics performed in a duration. 

It can be for short term ( few hours to a day) , intermediary term (1-day to 20-day) or long term(> 20 days to 500 days). 

Example: If you say 20 SMA graph, it is the technical analysis of a time frame of 20 days period on the simple moving averages. 

Moving Averages:

Moving Averages is a good swing trade technical indicator, which indicates a calculation of the average price of your chosen security cover over a period. It is also defined as Simple Moving Averages. 

Different Moving Averages:

To list a few moving averages:

Simple Moving Averages 

Exponential Moving Average

Moving Average Convergence Divergence 

Smoothed Moving Average

Linear Weighted Moving Average. 

Beside it, you can also refer to the  moving averages like:

Hull Moving Average

Triple Exponential Moving Average

Kaufman’s Adaptive Moving Average

Vidya’s Linear Regression Slope (VLSM). 

Exponential Moving Average:

In EMA, the analytics make more emphasis on the recent price action than SMA. 

Multiplier is a factor that defines the weighting given to the recent stock price. 

If you find a bigger multiplier factor then it will provide more weighting to the most recent price. 

The EMA calculation becomes more responsive to the recent price changes. 

Smoothed Moving Average (SMMA): 

In the SMMA, the calculation will provide a multiplier factor and if its value is reduced then the results will be less responsive to the recent stock price. 

Note: The SMMA may be less responsive to the recent prices when compared to EMA but more responsive in comparison with SMA. 

Linear Weighted Moving Average, LWMA

It is similar to the EMA, and weighting is given to each closing price and it declines linearly. It is a bit complex when compared to Simple Moving Average, SMA.

Moving Average Convergence Divergence, MACD

It is the difference between two exponential moving averages, like 33-day EMA and 21-day EMA. 

The graph will have lines plotted above and below the zero line. 

The lines above the zero line represent the bullish trend and lines below the zero line represent the bearish trend.