Forex technical analysis involves the use of a range of technical indicators, such as momentum indicators. In this lesson, we'll learn how moving averages act as momentum indicators as well as moving support and resistance (and how to label support and resistance levels). Through foreign exchange technical analysis, we can set multiple moving averages of different time periods in one graph and then form a composite kinetic energy indicator-moving average crossover. In this lesson we will study two types of moving average crossovers. The first type of moving average crossover is when the price moves above or below the moving average. The second is short-period moving average and long-period moving average crossover In foreign exchange analysis, we will learn under what circumstances the crossover of moving averages indicates potential momentum and trend changes. Let's start by discussing the so-called "momentum indicators". Kinetic energy indicators are favored by the majority of foreign exchange investors. We usually use kinetic energy indicators when other support and resistance indicators cannot meet the analysis. Kinetic energy indicators can allow traders to better see the potential direction of future price fluctuations.

6.1 Momentum indicator

Momentum indicators measure the rate of price change and are often used to identify trend weakening and potential reversal points. Although momentum indicators are often overlooked due to their simplicity, the importance of momentum indicators in the forex market should not be overlooked. In this lesson, we will learn how to use the Momentum indicator. When used well, momentum trading can be as profitable as trading with support/resistance.

6.2 Moving Average Crossovers and Simple Trading Systems - Part 1

The moving average can be used as a kinetic energy and support/resistance indicator. By setting the moving average of different time periods in the diagram, a very useful momentum indicator - moving average crossover will be obtained. This lesson covers two moving average crossovers that can be used as momentum indicators.

6.3 Moving average crossovers and simple trading systems - part two

For beginners in trading, when looking at the moving average crossover indicator, they may be eager to find a relatively simple system as an initial guideline. In this lesson, we will show you a practical example of using this moving average crossover trading strategy and explain how it works. However, please note that we do not recommend that traders use the moving average crossover indicator for blind trading without the support of other technical indicators and fundamental information.