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Use a moving average that is roughly half the length of the cycle that you are tracking. If the peak-to-peak cycle length is roughly 60 days then a 120 day MA is appropriate. Cycle lengths do vary so you will probably be left with a choice of several different time periods. Plot a range of MAs against the price history of the chart and compare the results; then opt for the best fit.

You have a choice of three types of moving average on Incredible Charts. What are the differences?
For a detailed explanation as to how each MA type is constructed, see Moving Average Construction.

Each type of MA has different characteristics:

• Simple moving averages have a tendency to bark twice: giving one signal when data outside the normal range is added and the opposite signal when the same data is dropped from the moving average calculation (at the end of the time period). They should be avoided for this reason.

In short, the SMA should be avoided and the weighted MA time period increased (by roughly 50%) when comparing to an exponential MA.

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Or go straight to one of the sub-topics:

• Daily, Weekly or Monthly?
• Primary Objective
  ~ Fast Moving Trends and Blow-Offs
  ~ Slow Moving Trends
• When to Use MAs
  ~ Suitable Filters
• Suitable MAs
  ~ Slower MAs
• Summary

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