Trend following: Moving Averages indicator to open the positions on the direction of the primary trend

Moving averages indicator is commonly used for estimation of the primary trend as well as the secondary correction and bear market rally for example. Traders choose the moving average period depending on the type of trading they do: short-term, medium-term or long-term. Short-term: 10 -55 period Moving Average (11 and 55 are usually used on lower timeframe). Medium-term: 55 - 100 period Moving Average (or the combination of 55 SMA together with 100 SMA). Long-term: 100 - 200 period Moving Average (or the combilation of 100 MA together with 200 MA). This indicator is providing the good view related to the market condition with all the aspects of the situation together with the possible entry points by using the well-known combinations of 2 or 3 indicators on one chart for example.