Triangular Moving Average has many similarities with other types of moving averages, such as exponential and simple moving average . However, there is one difference - a triangular moving average calculates the average of individual prices. Many traders say that the moving average is much more effective than others.
Triangular Moving Average (abbreviated TMA) is a more accurate version of the moving average. The accuracy of the calculation of the indicator provide double the average of the price, it is not done more than any of the moving average. Thanks to the double averaging, the indicator line has a very flattened shape.
Applying the indicator
This indicator is used to determine the volume of trading, the price and other technical factors. But, they are not accurate, and their use results in many false indicators, and as a result, and the loss of money.
The main method of triangular moving average, is to determine the trend of price movement. When crossing the line of the indicator changes trend , and thus generate signals for entry into the market. If the price chart crosses the triangular moving average upward, it is a signal to buy, and therefore if the price chart crosses the indicator down, it is a signal to sell. In order that the signals have high efficiency is necessary to consider the volatility of the market.
Triangular Moving Average change in trend can determine and give accurate signals for market entry. An interesting point is that the moving average is more sensitive than others to the trend moving averages, and it is at double the average. For a trader, it is very useful, as it is so far the best trend indicator.