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Technical indicator #1

Moving avg

Moving Average(MA)

A line connecting the average closing price over a set period. It's the simplest way to see if the market is heading up or down.

Importance★★★
TypeTrend
Common settingsShort-term 5–25 bars and long-term 75–200 bars are common
MT5(FUNDED7)Built in

1A 30-second chat

JUDITH
JUDITHWhich technical indicators should I learn first?
JADE
JADEThe moving average. Almost every trader has it on their chart, so everyone is watching the same line. That alone gives it meaning.
JUDITH
JUDITHSo should I buy when the lines cross?
JADE
JADEA crossover "follows the average," so it always lags. In a sideways market lines cross again and again and false signals pile up, so the basic idea is to read the flow from the line's direction first

2Here's how it looks

Moving averageUp = uptrendWatch if belowShort (5)Long (20)
The line's direction shows the trend, and whether the candles are above or below it shows strength

3Just check this

1

Line direction

Pointing up = uptrend, pointing down = downtrend. Start with just this

2

Position vs. candlesticks

Price above the line = buyers are stronger; below = sellers are stronger

3

The two lines crossing

The short line crossing above the long line is a "golden cross," and crossing below is a "dead cross."

4Reading basics

▲ Sign it may riseLine pointing up + price above the line → easier to judge that the uptrend is continuing
▼ Sign it may fallLine pointing down + price below the line → easier to judge that the downtrend is continuing

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

Moving averages help you cut down on "trading against the trend." A common prop firm mistake is buying against a falling market again and again until you hit the daily loss limit. Simply deciding never to trade against the line's direction makes losses easier to keep in check.

Daily loss line (50K account) Prior day end balance $50,000 Break this = fail $47,500 5% Max loss/day $2,500 (incl. unrealized) New day: 7am winter/6am summer
Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ)

6How to show it in MT5

These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next

MT5 step 1MT5 step 2MT5 step 3MT5 step 4
1 / 4

📱 Smartphone (iPhone & Android)

1

Tap the wavy-line icon (Indicators / インディケータ) at the top of the chart screen

2

Tap "f+" to the right of Main chart (メインチャート). (Indicators shown in the lower window open in a separate window automatically)

3

Tap "Moving Average" in the list

4

Enter the numbers and tap Save (保存) at the top right

💻 Computer

1

In the top menu, click Insert (挿入) → Indicators (インディケータ) → Trend → Moving Average

2

When the settings window (Parameters / パラメータ) opens, enter the numbers below

3

Tap OK to finish. You can also drag it onto the chart from the Navigator (ナビゲーター) on the left

🔧 Numbers to enter (common settings)

✓

Period

20 (or 5 for short-term)

✓

Method

Simple

✓

Apply to (適用価格)

Close

If you want two lines, a short one and a long one, repeat the same steps and change only the period. These steps are based on the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.

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