Chart foundations
The idea
A moving average smooths a price series. A simple average weights its window equally; an exponential average places more weight on recent observations. Both lag price. Crossovers may describe changing momentum but can repeatedly reverse in a range. Choose settings before testing rather than changing them to fit each chart.
A worked example
A 20-period average on a five-minute chart summarizes different activity from a 20-period average on a daily chart.
Try it yourself
Compare the same average in one trending and one ranging period. Count whipsaws as well as successful signals.
A mistake to avoid
Mistaking a lagging calculation for an independent forecast.