Moving averages is one of the most popular forex trading indicators amongst traders; it is probably one of the first indicators every beginner gets to learn.
Moving averages can be applied in any time frame provided the trader knows how to apply them for market entries.
Getting the best moving average for 4 hour chart shouldn’t be a standalone strategy, the trader must first run a proper market analysis on the pair then the 4 hour chart moving average can be a secondary option for trading.
BEST EMA FOR 4 HOUR CHART
Trading the 4 hour is a smarter way to trade not that you can’t trade on lower time frames, of course, you can: if you spend lesser time o the Pc then using the best EMA for 4 hour chart will save you time and energy.
I will refer you to my previous post above on this matter on 4 hour EMA.
BEST MOVING AVERAGE FOR 4 HOUR CHART
Below are the Best moving averages for 4 hour chart setup that works;
Generally moving averages are lagging indicators and should be combined with market structure knowledge for efficiency. This is a list of moving averages for 4 hour chart;
- MA 34 and MA 50 combined
- EMA 200 and EMA 50 combined
- EMA 21(shift 1) and EMA 55 (shift 5) EMA 89 (shift 8) All combined. Also add on chart EMA 233 (shift 3)(three times low high and median)
Note that the above moving averages can also be used across all timeframes.
RELATED: METATRADER 5 BROKERS LIST
BEST MOVING AVERAGES ON 1 HOUR CHART
The 1-hour timeframe is a very important time frame to keep an eye on when trading as it is one of the most-watched time frames by forex traders.
However, to maximize this time frame, a trader should have a good knowledge of the market structure and how to identify patterns, with this your application of a moving average will make more sense when trading.
For the best moving averages on the H1 see the MA(moving average) settings above.
RELATED: HOW MUCH CAN I MAKE TRADING FOREX?
RELATED: HOW TO SET STOP LOSS AND TAKE PROFIT IN MT4
BEST MOVING AVERAGES FOR DAILY CHART
Trading on a daily chart has many advantages as it filters the noise in the market are given a clear-cut dominant trend.
That being said a trader must use the necessary tool to maximize profit; this tool is the Fibonacci tool.
The best moving average for a daily chart is stated in the article above especially the EMA 233(shift 3) (high, median, and low) which helps for crossovers.
BEST MOVING AVERAGES FOR 5 MIN CHART
Understanding market structure and time frame top-down analysis are inevitable if you want to trade the 5 min chart and be profitable.
The best moving average for 5 minutes chart should be used after analysis on a higher time frame, and then the 5 minutes will be used for entry on the trend continuation.
Find the moving average settings for 5 minutes chart above.
BEST MOVING AVERAGES ON 15MIN CHART
The 15 minutes time frame is mostly used by many traders alongside H4 for time frame top-down analysis.
They can be useful after a proper market analysis on the H4 chart.
The 15 minutes moving average for entry will be the 21 EMA (shift 1) to see full Moving average settings, check above on the Best moving averages for 4 hour chart setup that works.
BEST MOVING AVERAGE CROSSOVER
The best moving average crossover will be more efficient after a support and resistance breakout and retest on a higher timeframe.
(Again market structure) I am going to give you a moving average crossover but it should be used knowing that you understand the market structure and time frame analysis.
The moving average crossover is EMA 233(shift 3) low, medium, and high).
RELATED: VERY EASY AND PROFITABLE TRADING STRATEGY MT4
RELATED: HOW TO TRADE FOREX WITH $10
WHAT IS THE BEST TIMEFRAME FOR MOVING AVERAGE?
The reason the MT4/MT5 comes with multiple time frames is that they are all useful so whatever timeframe you choose the moving average is supposed to work as well.
This is why having an understanding of market analysis using market structure patterns will give you an edge on using indicators properly, and knowing when to apply them for trading.
For the record to filter the noise moving average are best used on higher time frames H1 and above.
This doesn’t mean a trader cannot catch a good market entry on a lower timeframe as well.
RELATED: HOW TO KNOW WHEN A TREND IS ENDING?
CONCLUSION
Generally, indicators on their own are not reliable; they lag and don’t give real-time data, unlike price action. This is why knowledge of market structure is paramount.