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Moving Average System

The Moving Average (MA) trading system is a strategy used in the stock and options trading market. This strategy’s foundation bases itself on the average stock price over a period of time.

The moving average trading strategy is a simple mechanical system. It is a technical indication of increases and decreases within the stock market. It is used by traders to determine stock entrance and exit points. By following the moving average of a stock, a trader is able to better predict points to buy and sell stock, which will help increase profits from trade and reduce loss.

If you are searching for exclusive stock and options trading strategy, Chuck Hughes can help you. Call Chuck Hughes now to learn about the moving average trading system and other options trading strategies at (866)661-5664. Or Get More Information about Chuck Hughes’ exclusive moving average trading strategies by joining Chuck's Email

Chuck Hughes’ Moving Average Trading Strategy

Chuck Hughes offers an exclusive moving average trading strategy. Chuck Hughes' moving average system is based on historically proven rules, percentages and probability backed by many years of historical results. Chuck teaches his clients stock and options investing strategies that will increase their chances for profit and reduce their risk of loss.

Find out more about how Chuck Hughes uses the EMA system by watching his video.

Chuck’s moving average method can be used universally and is profitable in a broad arrange of sectors, including funds, indexes, options, stocks, individual stocks and mutual funds. All kinds of stocks can be traded using the moving average strategy, including bio technology, communications, computers, defense, energy, food, healthcare, home finance, insurance, leisure, medical, multimedia and transportation.

If you’re interested in learning Chuck Hughes’ personalized moving average strategy, call today at (866)661-5664 or Get More Information about the stock and options trading services that Chuck Hughes offers by joining our email list. When you use Chuck Hughes as your stock and options trading advisory service, you’ll receive exclusive trade recommendations based upon Chuck Hughes’ moving average trading strategies, including the EMA crossover strategy.

Why is Strategy Important in the Stock Market?

As a trader in the stock market, your success is based upon timing. If you make purchases and sales based upon strategized timing indicators, your chances of success will be greater than making trading decisions based upon emotion. It is critical that traders utilize stock and options investing strategies that will get them into the market when prices are low and out of the market before prices crash. Moving average trading strategies were specifically designed for this use.

However, using strategy alone will not make a trader successful. Traders have to understand how to use stock and options trading strategies.

Chuck Hughes has been trading stocks and options for almost 30 years. He has been successful in his personal trading history and in his professional career as the CEO of a stock trading agency. Chuck Hughes is an 8 times ​International Trading Champion. He’s won more trading championships than anyone in Champion Trading history.

Start Trading Options NowChuck Hughes is experienced and successful as a stock and options trader because of the strategies he utilizes.

Chuck Hughes is a living stock and options trading example. One such strategy is the moving average system. Not only has Chuck used the moving average trading system, he has designed his own exclusive stock and options investing strategy based upon this options trading system.

By using the moving average trading system, Chuck Hughes has helped clients achieve 4 to 1 reward to risk ratios. A 4 to 1 reward to risk ratio is uncommon and not easily accomplished.

If you’re interested in achieving 4 to 1 reward to risk ratios in the stock market, call Chuck Hughes today at (866)661-5664 or Get More Information about Chuck Hughes’ exclusive moving average trading strategies by Contacting Chuck

Types of Moving Average Trading Systems

The moving average trading strategy is a technical indicator and can be used to calculate the average stock price over any amount of time. The time period can be inclusive of seconds, minutes, days, months or years. However, the most commonly used average trading systems base themselves on a number of days.

Moving averages with shorter time periods will be faster to respond to changes in the stock market because these values are more sensitive to day to day market increases and decreases. Moving averages with longer time periods will be slower to respond to changes in the market because they are not as sensitive to the increases and decreases of day to day price movements.

The moving average is able to calculate the weight of time periods in different ways: equally or exponentially. This difference in weight calculation accounts for different moving average methods: the simple moving average and the exponential moving average.

Simple Moving Average (SMA)

The simple moving average (SMA) refers to the average stock price over a certain period of time. The weight of all data points are distributed equally, so each data point is given the same amount of importance whether or not the date was more recent or historical.

The SMA method is calculated by taking the mean of the given set of values. In other words, this method adds the closing price of the security to the number of data points, and then divides this total by the number of data points. SMA is equal to the mean of all data points collected. Again, data points can be seconds, minutes, days, months or years. The main thing to understand about the simple moving average is that each data point is weighted equally.

Exponential moving average (EMA)

Learn To Trade OptionsThe exponential moving average (EMA) is similar to the simple moving average, except that it applies more weight to the most recent data points and less weight to more historical data points.

This weight distribution treats recent data as more relevant, thus more deserving of greater amounts of weight than less recent data. The exponential moving average is also known as the ‘exponentially weighted moving average’.

Many stock and options trading strategists criticize the simple moving average for its equal weight distribution. The exponential moving average was a method created to portray the weight distribution of time periods more accurately.

The exponential moving average is more complex than the simple moving average. Because of its complexity, it indicates earlier changes in stock price and direction. Because the exponential moving average gives faster indications of stock movement, Chuck Hughes uses the exponential moving average system.

The EMA system far exceeds the potential for returns than SMA. Because the simple moving average takes a longer amount of time to register movement, it will indicate changes in price less quickly, potentially resulting in a loss of money. Buying and selling prices will not be at their lowest or highest when the SMA is able to indicate a change in the system.

Are you interested in learning how to use exponential moving average strategies to invest in the stock market? Call Chuck Hughes today at (866)661-5664 to find out more about how Chuck uses EMA to create profit form the stock and options trading system. Or Get More Information about Chuck Hughes’ exclusive moving average trading strategies by joining Chuck's Email

How to Use the EMA System as an Indicator of Stock Market Movement

The exponential moving average is able to be used as an indicator of price changes within the stock market when two exponential moving averages of different amounts of time are measured and compared.

Exponential moving averages look like bell shaped curves. When one EMA is measured against another EMA of a different length of time, they will collide and crossover each other at different points. These points of collision are the signal points for price changes within the stock market.

EMA crossovers are an extremely complex stock market strategy. This strategy is what Chuck Hughes uses to indicate buying and selling points. To learn more about EMA Crossovers and the options trading system, read more information about Chuck Hughes' EMA crossover strategy.

Stock and Options Trading Examples

Using his exclusive exponential moving average crossover strategy, Chuck Hughes has been successful at creating revenue in the stock and options trading market. Below are a few of Chuck’s stock and options trading examples:

1) The exponential moving average trading system indicated a signal to sell the NASDAQ 100 Index on October 3rd of 2000. The indicator was triggered because the 50-day exponential moving average crossed below the 100-day exponential moving average. Chuck’s indication to sell was issued right before the steep decline in the index. Chuck’s exponential moving average system prevented losses that most of the rest of stock market traders incurred during the 2000-2002 bear market in tech stocks.

Learn to Trade Options2) In the spring of 2003, the exponential moving average trading system indicated a crash, which signaled a time to buy almost all stocks and indexes. This indication was correct, which allowed Chuck to buy stock at extremely low prices. The stock Chuck bought at low prices would later be sold for much higher prices, creating a high return on investment (ROI).

3) The exponential moving average trading system indicated a sell signal on Enron stock, right before it dropped. Enron stock went from $73.09 to almost $0 per stock. By following the sell signal given by the EMA crossover strategy, Chuck Hughes was able to avoid a loss, which many traders incurred.

4) Right before Worldcom stock crashed, the exponential moving average trading system triggered a signal to sell. The sell signal was triggered at $50.04 dollars per stock. The crash dropped Worldcom stock from $50.04 to $0. Again, Chuck Hughes was saved from this loss of securities because of strategy involving the exponential moving average trading system.

By using the EMA system, Chuck Hughes has made financial gains and avoided loses both for himself and for his clients in the stock market. If you’re interested in learning how to increase profits and reduce risk in the stock market, call Chuck Hughes today at (866)661-5664, or Get More Information about Chuck Hughes’ exclusive moving average trading strategies by joining Chuck's Email