Moving averages: how to read a trend and find pullback entries

A moving average adds up the last N closing prices and divides by N, then joins the values into one smooth line. It hides noise and shows direction. A 20 reacts fast; a 200 shows the long-term trend.

Reading it: a rising average with price above it means buyers are in control. A falling average with price below it means sellers are. If price keeps crossing it back and forth, there is no trend to follow.

The pullback entry: in an uptrend, wait for price to dip back to the average and for buyers to return, then buy with a stop below the dip. If price is far above the average, it is stretched; wait.

The average follows price, so it is always a little late. Use it with structure and zones, not alone. Try it in the Academy.

Education only. This is not financial advice. Trading gold with leverage involves a high risk of losing money.

Practise it for free

Learn step by step with the interactive Academy: charts you can tap, drag and replay, with a Coach and a free certificate.