Trading Talk

Moving Average Slope Trading Strategy

Hi Traders,

In the realm of technical analysis, a moving average slope serves as vital tool for understanding market trends and identifying potential trading opportunities. Traders and investors often rely on moving averages to gauge the strength and direction of a trend.

While the position of the moving average in relation to the price action is important, another crucial factor to consider is the slope / angle of the moving average.

In this Trading Talk, we will explore how to determine the strength of a trend by analyzing the slope of a moving average, using a proprietary percentage calculation to measure the distance it has moved over time and the angle it has formed.

Moving average angle
Measuring the Moving Average Angle and Distance

Moving Average Slope / Angle

Using the function created in this Trading Talk you can easily determine the angle and strength of any Moving Average.

Moving average angle up trend down trend

Moving Average Slope Trading Strategy

There are multiple ways in which you can use the slope of a moving average in your trading, the most common strategies are:

  • Trend Trading
  • Mean Reversion

Trend trading

With the Trend Trading version the strategy will look to trade in the direction of the trend following the moving average with its momentum.

Automated Bitcoin Moving Average Slope – Trend Trading Strategy

Mean Reversion

With the Mean Reversion version the strategy will look to trade against the direction of the slope, placing trades against the market to revert back to the mean, or back to the moving average.

Automated Bitcoin Moving Average Slope – Mean Reversion Strategy

If you would like to learn more about creating automated trading strategies check out the Trading Talk series which has a new episode each week with different topics and concepts on popular automated trading strategies.

Why wait? Get started today.  Sign up for an account today with the Tradeview Forex broker www.tradeview.tech and start creating your own automation.

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