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The Moving Average Fifty

The moving fifty is a very popular technical indicator.  Technical traders use it in many ways.  The time has come to get to know more about the best ways one can use the moving average fifty.  Let's get started.

Moving 50 And RSI Oscillator

One can replace the RSI indicator with the Bollinger bands (50, 2) on any time frame.
Please feel free to quote me anywhere.

The Bollinger bands (50, 2) is composed of the center line 50 (moving average 50) and upper bands that are just the projection of the center line (deviation 2 up and down).
The price action structures within the bands can replace the RSI indicator if one understands more about the ultimate role of the RSI indicator.

To the beginner technical traders, that could be difficult to accept.  Please do not worry because the RSI oscillator is still a reliable indicator that the professionals love to use.  I like the RSI too.

Moving Average Fifty And CCI Indicator

Contrary to the RSI indicator of any settings, one can only replace the commodity channel index period fifty (CCI 50) with the Bollinger bands (50, 2).  

Technical traders often use the CCI period fifty on the hourly.  Please do not misuse the CCI indicator, but learn to master it like a pro.
When one is using CCI 50, it is also helpful to place on the chart the Bollinger bands (50, 2).   Really, one that using CCI period x can also use the the Bollinger bands (x, 2).

Moving Average 50 Crossover

TSTW 24 day traders use the MA 50 and MA 100 crossover instead of the redundant ADX indicator.  To understand more check my article about the moving average 100.  So, I recommend MA 50 and MA 100 crossover on all times frame. 

Another useful crossover is MA30 and MA50.  Without saying more, it is better to use MA 30 and MA 50 crossover instead of MA 20 and MA 50.  One can also use MA 50 and MA 200 crossover. 

Power Of Moving Average fifty

The moving average fifty does help as the boundary between bullish and bearish zones.  

Usually, the bullish motive (waves one to five or the bullish trend)) stays above a rising moving average fifty.  Also, the first leg of the corrective phase after the bullish trend will finally close below MA 50.  

Obviously, things do not always play like that all the time, but it is important to know.  Note that, the bearish motive (waves one to five) stays below a declining moving average fifty.

Please understand that, one that is using the moving average 50 should always remember to draw trend lines, channels and key levels.  I have already barked about that issue when I was writing about the moving average 100.

Last point, one must always keep eyes on the the slope of the moving average 50.

Usually, when MA 50 is sloping up, it indicates that the price is more likely to break resistances ahead.  The opposite is also true if it is sloping down.  One that wants to trade MA 50's slope ought to master the breakout trading.

Conclusion

The moving average fifty should receive an awards of best technical indicators for bullish and bearish traders because it does not mislead technical traders.  

It is easy to use it, and most professional traders and investors do use it in conjunction with the chart patterns.  I love the moving average 50, but I love to use it with MA 100 or chart patterns to isolate high probability trade setups.

Thank you for reading.  If this article has put a smile on your face then please share and bookmark it.  I will really appreciate that.  Please post relevant questions and comments at 24stocktrader YouTube channel, and I will come back to you in due course.

I wish you the very best.
Happy Trading To All

This article is written by
George Beaulieu
founder of https://www.Stochastic-macd.com