How to find trend using Moving Average?

[shanmugapradeep]

Hello,

How can I identify market movements (Uptrend, Downtrend, and Range market) using Moving Averages or any other indicators?

Currently, I am using the 200 EMA:

• If the current price is above the 200 EMA → Uptrend
• If the current price is below the 200 EMA → Downtrend

However, this method gives incorrect results about 50% of the time.

Is there a better alternative to determine trends using Moving Averages or any other indicators?

 

[Faillims43]

To spot trends using Moving Averages (MA), plot a 50-day or 200-day MA on a price chart. If price stays above the MA, it’s an uptrend; below suggests a downtrend.

 

[Thaddeus Finch]

Hello,

How can I identify market movements (Uptrend, Downtrend, and Range market) using Moving Averages or any other indicators?

Currently, I am using the 200 EMA:

• If the current price is above the 200 EMA → Uptrend
• If the current price is below the 200 EMA → Downtrend

However, this method gives incorrect results about 50% of the time.

Is there a better alternative to determine trends using Moving Averages or any other indicators?

The 200 EMA is a good start, but it can lag a bit, especially in sideways markets. I find combining it with a shorter EMA, like the 50 EMA, helps confirm trends better. Also, paying attention to price action and key support/resistance levels can really help avoid false signals.