We’re doing some maintenance between 0800 EDT and 2000 EDT on April 12 2025. There will be interruptions to the following services during this time: authentication, registration, funding and trading systems. Things will be back to normal as soon as the maintenance window has ended. We apologise for the inconvenience.

Dismiss close

Understanding the role of moving averages in trend analysis

Posted in Technical analysis
AdobeStock_578563082 (1) (1)

Dive into the role of moving averages (MA) in technical analysis to enhance your trend evaluation. This guide covers the impact of the MA angle and price position on trend detection, highlights the effectiveness of medium-term versus short-term MAs, and explains how to filter out false signals using consecutive candlesticks

Using moving averages to determine trading trends

66_1
Figure 1: Relationship between the 20-day MA angle and the trend Source: TradingView
66_3
Figure 2: Relationship between the 20-day MA and the closing price Source: TradingView

Filtering using two consecutive candles

66_3
Figure 3: Filtering using two consecutive candles Source: TradingView
66_4
Figure 4: False signals when using the two consecutive candles filter. Source: TradingView
Frequently asked questions

How do we use the MA to determine the trend?