Moving Averages – FX Replay Guide
Moving Averages are a foundational tool in technical analysis and are fully supported in FX Replay. They help smooth out price fluctuations, identify trend direction, and can be used for both short-term setups and long-term strategy planning.
How to Use Moving Averages in FX Replay:
1. Types of Moving Averages:
- SMA: Useful for a broader trend overview.
- EMA: Ideal when you want quicker reaction to recent price action.
2. Choose Your Periods:
- Use shorter periods (9, 20) for scalping or intraday setups.
- Use longer periods (50, 200) for swing or position trading backtests.
3. Spot Trend Direction:
- A rising MA indicates a bullish trend – look for long setups.
- A falling MA suggests a bearish trend – consider short setups.
4. Crossover Strategy:
- Golden Cross (short > long) = bullish signal.
- Death Cross (short < long) = bearish signal.
- Use FX Replay’s visual indicators and overlays to confirm these events.
5. Use MAs as Dynamic Zones:
- Watch how price reacts to MAs during replays.
- If it respects them as support/resistance, it can provide strong confluence.
6. Combine with FX Replay Tools:
- Use alongside your position tool for precise entries.
- Layer moving averages with FVGs, order blocks, or PO3 structures to validate entries.