It’s obvious from the title that this post is about moving average and how it’s one of the most powerful (yet mostly ignored) indicator.

This is not just another read about how Moving average works.

I wanted to highlight the core principle of mastering a skill and perfecting it. It holds true even as a trader to moving average indicator.

It's better to master one indicator than to just know a few half way.

So the indicator in the discussion is Moving Average. There are many types of Moving Average like Exponential, Weighted, Simple and many more. For this post, we will focus on only Simple and Exponential Moving Average.

SMA(simple moving average) and EMA(exponential moving average) focused on one key thing, the rate of change of price.

If Price is speed then Moving average is the acceleration.

Just like racing has curves and steep turns, trading has its ups and downs. That’s why acceleration is mostly better than top speed in a race.

This post we will specifically focus on 2 new ways you can use the moving average.

Open-Close Crossover :

Plot two EMA or SMA of any length you like, personally I like 20 length.

Then Change the source of one to Close price and other to Open price. Below screenshot is of EMA(close) and EMA(Open) both of 20 Length.