Trading Alchemy Read About Moving Averages

The Alchemy Multiple Moving Averages Crossover Indicator was designed to allow a trader to take advantage of the various types of moving averages available in TradeStation and combine them into a 2 line or 3 line moving average indicator with a crossover feature. Currently, different types of moving averages i.e.; simple, exponential, weighted, etc., cannot be mixed with the standard set of indicators in a crossover feature. The Alchemy Multiple Moving Averages Crossover Indicator removes that limitation and allows any combination of moving averages to be used with a crossover alert feature. This gives the trader much more flexibility in defining and observing moving average crossovers.

Moving averages are one of the oldest and most used technical indicators in existence. Traders can use the Alchemy Multiple Moving Averages Crossover Indicator to customize their moving average crossovers with all the available moving averages included in TradeStation.

Many traders use moving averages and crossings of different moving averages to help them determine trend changes or the strength of a trend. For example, using a 2 line simple moving average with lengths of 5 for the fast average and 20 for the slow, a cross of the 5 period moving average up through the 20 period would signal the possibility of a bullish trend change. Also, if the 5 period crossed up through the 20 period and began to separate and continue moving further away from the 20 period average, this would indicate a strengthening trend. A popular moving average method is the use of 3 moving averages with different lengths. Use the flexibility of the Alchemy Multiple Moving Averages Crossover Indicator to customize and monitor your own moving average method.