Day trading using moving averages

22 lip 2023

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The first time you studied moving averages, you must have had a new and surprising experience.

However, if you trade using the moving average, you will also have experienced that it does not work properly.

This is the limit of moving averages.

This is a problem because it is not easy to quickly determine whether the moving average line is supported or resisted because it is made up of curved lines.


Moving averages, which are explained in many textbooks, usually have a lot of descriptions of 20 and 60 setting values.

This can be said to be the result of the utilization value in the stock market, which has been utilized for a long time.

However, charts in the coin market use a default value of 150, which is greater than the 20 and 60 settings.

Therefore, if the price is above the 150 moving average based on the 150 moving average, it is an uptrend, that is, a buying season.

Conversely, if the price is below the 150 moving average, it is in a downtrend, i.e. selling period.

Therefore, the time to buy corresponds to LONG and the time to sell corresponds to SHORT.

The setting value of 150 for this moving average is a value that can be applied to all time frame charts.

Therefore, even in day trading, you can trade based on the 150 moving average.


However, as mentioned above, it is not easy to trade only with the moving average, so to overcome this, Bollinger bands and StochRSI indicators are added and utilized.


Because the moving average line is made up of curves, you proceed with trading by your own sensory decision.

Therefore, market transactions are mainly conducted rather than limit transactions.

Therefore, it is necessary to be careful when trading because it is often bought at a higher price than expected and sold at a lower price than expected.

Depending on the size of the trading volume, it is necessary to decide whether to proceed with the transaction based on the limit or market price.

Coins (tokens) with a high trading volume can be traded at market prices, but caution is required when trading coins (tokens) with a low trading volume.

Therefore, when conducting day trading, you should check the size of the trading volume rather than the increase in the price.


Although the above explanation may seem difficult, you should make good use of the search function supported by the exchange as it is a must-have for day trading. (Search by trading volume)


Once you have decided which coin (token) to trade, you now need to decide which time frame chart and which moving average line to use.

Time frame charts that fall under scalping usually refer to trades under the 3m chart.

Therefore, you should set 5 moving averages on the chart and practice trading from the 1m chart.

Buy when the price crosses above the 5 Moving Average, and sell when it crosses below the 5 Moving Average.

After several trades like this, you can find a time frame chart that suits you.

Finding a time frame chart that suits you depends on whether you traded near the price you thought when you traded when the 5 moving average line was broken up or down.

If the trades are continuously made near the price you thought, the time frame chart you traded now becomes a day trading chart that suits you.


If the time frame chart found is a chart below the 5m chart, set a 26, 50 moving average line on the chart.

Otherwise, if it exceeds the 5m chart, set 5, 26 moving averages on the chart.

(1m chart)


(15m chart)


Note that,
Settings for the bowlinger bands are 60, 1.8.

The StochRSI indicator is 3, 3, 14, 7.
Here 7 is the Stochastic Length value.


You have also found a coin (token) to trade, and have completed setting up a time frame chart and indicator to use.


If you are trading spot, buy when the 150 moving average, the most basic moving average, is crossed upward, and when the price is above the 150 moving average, 5 and 26, and also when the 26 and 50 moving averages are in regular alignment.

At this time, what you need to check is whether it is located near the top of the Bollinger Band and whether the StochRSI indicator is in the overbought zone.

If it is near the top of the Bollinger Bands or if the StochRSI indicator is in the overbought zone, do not buy.

Therefore, in order to buy, the price must be located in the middle or below the Bollinger Band, and the StochRSI indicator must also be located near or below 50.


To recap,
In spot trading,
1. When the 150 moving average crosses upward, it is a buying time.

2. When the price is located above the 150 moving average, when the 5 and 26 and 26 and 50 moving averages form a regular array, when the Bollinger Band is below the middle and the StochRSI indicator is below 50, it is a buying time.


when to sell
1. When it falls below the 150 Moving Average

2. When the 5 and 26 and 26 and 50 moving averages create an inverted array

3. When the StochRSI indicator breaks out of the overbought zone


SHORT trading in futures trading is the opposite of the spot trading above.


This concludes the study of moving averages.

Moving averages are an important part of chart study.

In order to perform lower chart analysis or trading, you must learn the concept and movement of moving averages.

Therefore, you should awaken your senses by using various indicators using moving averages.

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** All descriptions are for reference only and do not guarantee profit or loss in investment.

** Even if you know other people's know-how, it takes a considerable period of time to make it your own.

** This is a chart created with my know-how.

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