T3 Moving Average Forex Technical Analysis and T3 Moving Average Forex Trading Signals
T3 uses a Smoothing factor/technique to produce trading signals that are similar to those of the moving averages, but are more accurate than those of the MA. The T3 is a modification of method used to calculate the original MA and it has a smoother curve and it does not lag the market as much as the MA. This Indicator follows price action and adjusts itself to the direction of the Forex market.
Forex Technical Analysis and Generating Forex Trading Signals
The T3 moving average is similar to the original MA, and it can be traded in the same way as the original MA indicator.
Moving Average Crossover Signal
This Method involves using two T3 MA and generating trading signals when the two cross each either upwards generating an upward Forex trend signal or cross downwards generating a downward Forex trend Signal.
Bullish Trend - Prices are bullish as long as price action remains above the indicator. When this move happens it implies that prices are bound to continue moving upwards.
Bearish Trend - Prices are bearish as long as price action remains below the T3 Average. When the price is below the indicator it implies that price is bound to continue moving downwards.
Whipsaws - This is a smoothed indicator which is not prone to giving out whipsaws, since it is smoothed it is less responsive to price spikes, therefore a price spike will not skew the data used to calculate and plot it.