2025-07-23 09:39:04
If you're just starting out and want to first understand what moving averages are, how they work, and why traders use them - read Part 1: Moving Averages for Beginners before diving in.
To help you choose the right moving average (MA) setup by understanding your trading style, so you can either confidently apply proven setups or personalize them into something that truly fits the way you see the market.
Imagine walking into an optician and borrowing your friend’s glasses.
They might work, but if the prescription isn’t quite right, everything feels off.
That doesn’t mean their glasses were bad - it just means you need your own lens.
Moving averages are similar.
A 9 EMA or 21 EMA might work great for someone else - and it’s totally fine to start there.
But over time, the best traders learn to tweak their tools to match how they see the market.
Take a note of this:
Many great traders learned by studying others. Copying a mentor’s setup isn’t wrong - it’s wise.
But here’s the key:
Don’t stop at copying. Evolve what you learn into something that makes sense for you.
And that starts with knowing your trader type.
Before choosing your moving average settings, ask:
To get clarity, read: Discovering Your Trader Profile
It’s a quick guide to identifying your strengths, preferences, and pace - so you can choose tools that work with you, not against you.
Once you understand your style, you can choose MAs that match your rhythm:
Trader Type | MA Setup | Why It Works |
---|---|---|
Scalper | 9 EMA + 20 EMA | Fast reaction to momentum shifts |
Day Trader | 20 EMA + 50 SMA | Balance between speed and confirmation |
Swing Trader | 50 EMA + 200 SMA | Smoother trend following, filters noise |
Momentum Trader | 21 EMA + 100 EMA | Clean impulse tracking, avoids choppy zones |
Mean Reverter | 20 SMA + Oscillator (RSI, MACD) | Helps fade extreme moves back to equilibrium |
Pro Tip: Use one fast EMA for entries, and one slow SMA for trend bias.
MA Type | Best For | Description |
---|---|---|
EMA (Exponential) | Momentum setups | Weighs recent candles more heavily - faster reaction |
SMA (Simple) | Trend structure | Averages all candles equally - smoother movement |
200 EMA/SMA | Institutional bias | Common long-term trend guide |
9 EMA | Pullback entries | Great for quick reaction in trends |
21 EMA | Balanced system | Widely used across trading styles |
20 SMA | Mean reversion | Pairs well with RSI and Bollinger Bands |
Open your charts and watch how price reacts around your MAs:
Create a simple journal or screenshot log:
Over time, you’ll spot patterns - and those patterns become confidence.
If you're unsure which pair to start with, try the 20 EMA + 50 SMA combo on the 15-minute or 1-hour chart. It's widely used, balanced, and beginner-friendly - making it a strong default while you learn.
Why the lower timeframe? It’s faster to learn if you practicing learning while the candles are printing much faster compared to a much higher timeframe like the 4-Hour, Daily, and Weekly
Always match your MA speed to the asset + timeframe combo you’re trading.
This is your space to bring theory to life. Consider showing:
Pro Tip: Use Structure + MA confluence as confirmation for a higher probability setup
Strategy | MA Setup | How It Helps |
---|---|---|
Pullback Entry | 20 EMA + 50 SMA | Buy dips, sell rallies in trend |
Breakout Entry | 9 EMA + 21 EMA | React to explosive breakouts |
Trend Filtering | 50 SMA + 200 SMA | Avoid counter-trend trades |
SMC Confluence | 21 EMA Only | Aligns with BOS/CHoCH and FVG zones |
Copying someone else’s system is a great starting point - but the best traders evolve what they learn into something that reflects their mindset, lifestyle, and style.
Moving averages aren’t magic. They’re not predictors.
They’re just tools - but when they match your rhythm, they become powerful.
So whether you’re scalping, swinging, or catching trends - choose MAs that make you feel in control.
Let them simplify your chart, not complicate it.
Open a free demo account today and experience institutional-grade spreads, lightning-fast execution, and all the tools you need to grow as a trader.
It’s time to go from theory to execution - risk-free.
Create an Account. Start Your Free Demo!
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