News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
More View more
Real Time News
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here:
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here:
  • What's the difference between leading and lagging indicators? Find out from here:
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here:
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here. #DailyFXGuides
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here:
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here:
Entries/Exits Based on Moving Averages

Entries/Exits Based on Moving Averages

Richard Krivo, Trading Instructor

Instructor’s Response:

Your point is well-taken and anyone who has traded for a while can identify with it.
All indicators are "lagging" by definition since, in some form or another, they are based on an average of the price action that has previously occurred.
In the case of Moving Averages, the faster moving average will provide more trading signals and give them earlier. That being said, they will be less valid than the longer Moving Averages since the longer ones are based on a greater number of data points. This is the primary reason that we recommend the use of longer term charts (at least one hour in length) since the signals provided will be more reliable than those generated from "minute" charts.
Based on the chart posted, had the trade been entered at the #3 crossover, roughly 250 pips would have been "left on the table" from the very beginning of the move. However, had the trader stayed with that trade until the exit crossover of the 10 and 20 SMAs which occurred in late September, the gain would have been about 1500 pips.  Moreover, had a trader stayed in the trade until the 50 SMA was crossed over to the upside in mid-December, the gain would have been about 2750 pips. These pip totals have netted out the pips left on the table at both the opening and closing of the trade.
The visual on the chart below bears this out...
chart 6 22 10
Trying to enter a trade right at the beginning of a move and exit right at the end will be, as you say, frustrating. And, as can be seen on the chart, it is not necessary to do that to be successful in the long run.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.