ated MA). A MA is simply a curve that represents previous price action that is usually plotted directly over the price chart. If you were looking at a MA curve on a daily price chart (one price bar per day), each MAWhen first exposed to the concept of technical trading (making trading decisions based on price chart patterns and price movements), most people will think they have finally found a sure-fire way to make money in the markets. The running joke is that technical traders are searching for the “Holy Grail” in their trading – ie they are looking for that perfect combination of price movement, chart patterns, and chart indicators that will always result in a profitable trade and never give a false signal.

Of course just like in real life, the search for the Holy Grail in trading is never ending. In other words, there has never yet been a system discovered which would always result in profitable trades and never give a bad signal.

One of the most common, and indeed still the most useful, types of chart patterns to study is the moving average (abbreviated MA). A MA is simply a curve that represents previous price action that is usually plotted directly over the price chart. If you were looking at a MA curve on a daily price chart (one price bar per day), each MA

markets. The running joke is that technical traders are searching for the “Holy Grail” in their trading – ie they are looking for that perfect combination of price movement, chart patterns, and chart indicators that will always result in a profitable trade and never give a false signal.

Of course just like in real life, the search for the Holy Grail in trading is never ending. In other words, there has never yet been a system discovered which would always result in profitable trades and never give a bad signal.

One of the most common, and indeed still the most useful, types of chart patterns to study is the moving average (abbreviated MA). A MA is simply a curve that represents previous price action that is usually plotted directly over the price chart. If you were looking at a MA curve on a daily price chart (one price bar per day), each MA

will always result in a profitable trade and never give a false signal.

Of course just like in real life, the search for the Holy Grail in trading is never ending. In other words, there has never yet been a system discovered which would always result in profitable trades and never give a bad signal.

One of the most common, and indeed still the most useful, types of chart patterns to study is the moving average (abbreviated MA). A MA is simply a curve that represents previous price action that is usually plotted directly over the price chart. If you were looking at a MA curve on a daily price chart (one price bar per day), each MA

em discovered which would always result in profitable trades and never give a bad signal.

One of the most common, and indeed still the most useful, types of chart patterns to study is the moving average (abbreviated MA). A MA is simply a curve that represents previous price action that is usually plotted directly over the price chart. If you were looking at a MA curve on a daily price chart (one price bar per day), each MA

ated MA). A MA is simply a curve that represents previous price action that is usually plotted directly over the price chart. If you were looking at a MA curve on a daily price chart (one price bar per day), each MA chart point is the average of “X” number of days’ price points added together and then divided by “X”. This gives you the average price for that number of days. The first MA chart point cannot be plotted until “X” days have elapsed, and then each successive chart point is plotted after that. The starting day for “X” is bumped up one price bar each day, so that every point on the MA curve represents the latest “X” days. This is much easier to see than it is to describe!

The resulting MA curve follows the price bars somewhat, but a larger “X” produces a more gentle MA curve, (and further removed from each day’s price action). A smaller “X” number produces a MA curve that is a little choppier and more close-fitting to the underlying prices.

A MA can be plotted for any desired time frame, not just for daily charts. Some common price charts da