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      Best Moving Average Settings Based on Your Trading Style

      Published: just now

      Best Moving Average Settings Based on Your Trading Style

      This is Part 2 of our Moving Averages Series

      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.

      Goal of This Lesson

      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.

      Real-Life Analogy: MAs Are Like Eyeglasses for Price

      Visual content

      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.

      It's Smart to Learn From Others - Then Adapt

      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.

      Step 1: Discover Your Trader Profile

      Visual content

      Before choosing your moving average settings, ask:

      • Am I fast and reactive, or patient and selective?
      • Do I like quick momentum entries or multi-day trend plays?
      • Do I hold through noise, or want to be in and out?

      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.

      Step 2: Match Your Moving Averages to Your Trading Type

      Once you understand your style, you can choose MAs that match your rhythm:

      Trader TypeMA SetupWhy It Works
      Scalper9 EMA + 20 EMAFast reaction to momentum shifts
      Day Trader20 EMA + 50 SMABalance between speed and confirmation
      Swing Trader50 EMA + 200 SMASmoother trend following, filters noise
      Momentum Trader21 EMA + 100 EMAClean impulse tracking, avoids choppy zones
      Mean Reverter20 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.

      Common MAs and What They Do

      MA TypeBest ForDescription
      EMA (Exponential)Momentum setupsWeighs recent candles more heavily - faster reaction
      SMA (Simple)Trend structureAverages all candles equally - smoother movement
      200 EMA/SMAInstitutional biasCommon long-term trend guide
      9 EMAPullback entriesGreat for quick reaction in trends
      21 EMABalanced systemWidely used across trading styles
      20 SMAMean reversionPairs well with RSI and Bollinger Bands

      Step 3: Observe and Journal Your Findings

      Open your charts and watch how price reacts around your MAs:

      • Does it bounce cleanly?
      • Does it chop through?
      • Does structure align with your MA?
      • Do you feel more confident using them?

      Create a simple journal or screenshot log:

      • Date
      • Asset
      • Timeframe
      • MA reaction (rejection, breakout, fakeout)
      • What you learned from that moment

      Over time, you’ll spot patterns - and those patterns become confidence.

      Bonus Tip:

      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

      The Role of Timeframe & Volatility

      • A 20 EMA on a 1-minute chart behaves very differently than on an H1 chart
      • Fast pairs (like NASDAQ or GBP/JPY) may need quicker MAs
      • Slower markets (like EUR/CHF) can use wider settings

      Always match your MA speed to the asset + timeframe combo you’re trading.

      Chart Example

      This is your space to bring theory to life. Consider showing:

      • A breakout of price action
      Visual content
      • A clean pullback entry using 20 EMA on NASDAQ
      Visual content
      • A trend continuation using the 50 SMA until it flips
      Visual content

      Pro Tip: Use Structure + MA confluence as confirmation for a higher probability setup

      Strategies to Test With MA Setups

      StrategyMA SetupHow It Helps
      Pullback Entry20 EMA + 50 SMABuy dips, sell rallies in trend
      Breakout Entry9 EMA + 21 EMAReact to explosive breakouts
      Trend Filtering50 SMA + 200 SMAAvoid counter-trend trades
      SMC Confluence21 EMA OnlyAligns with BOS/CHoCH and FVG zones

      Common Mistakes to Avoid

      • Using too many MAs and clouding your chart
      • Entering just because price “touched the line”
      • Not aligning MAs with structure or price action
      • Ignoring timeframe when choosing MA settings

      Final Thought

      Visual content

      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.

      Call to Action

      3 Simple Steps to Build Your MA System:

      1. Read: Discovering Your Trader Profile - Understand how you naturally trade
      2. Choose: Pick a 2-MA combo that matches your pace
      3. Observe: Watch how price respects your MAs - and journal what you notice

      Start Practicing with Confidence - Risk-Free!

      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.

      • Trade forex, indices, gold, and more
      • Access ACY, MT4, MT5, & Copy Trading Platforms
      • Practice with zero risk

      It’s time to go from theory to execution - risk-free.

      Create an Account. Start Your Free Demo!

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      This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

      ACY Securities is one of Australia's fastest growing multi-asset online trading providers, offering ultra-low-cost trading, rock-solid execution, technologically superior account management and premium market analysis.

      This content may have been written by a third party. LiquidityFinder makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
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