Right order of Moving Average

When you see price movement in your screen, you must answer the same question " is the price bullish or bearish. In other word is the price trending up, trending down or moving side way.

To answer this old question, you can use a different approach, different method or different indicators.

I have been try many ways, many indicators, than i found that moving average is the best indicator to solve this problem.

How moving average (MA) can solve this old question?

" The moving averages must be in a right order "

Many trader use single or double MA to analyze price movement.

You may use 200 MA to separate price into bullish movement (if price is above 200 MA) or bearish movement (if price is below 200 MA).

Another trader may use double MA to find a crossover, trader may use 20 MA and 10 MA combination or 50 MA and 20 MA combination.

I have been try these kind of strategy, here is my conclusion :
"you need at least three ( not one, not two) moving average at your screen"
1. long term moving average ( i used 200 MA )
2. medium term MA ( i used 50 MA )
3. short term MA ( i used 20 MA )

Let's go back to words "right order". I'll explain it with table below

the price is trending up if the short term MA has a highest value than medium and long term MA and medium term MA has a higher value than the long term MA. For trending down you can read it from table above.

so if you want to open long position, make sure that the order must be 20 MA, 50 MA than 200 MA when you sort it from the biggest to smallest value. Here an example from USDCAD weekly price movement

it is very clear that USDCAD in weekly time frame is trending up. Your next action is to find a trading setup for taking LONG POSITION ONLY. Caution, DO NOT take short position if the price is trending up.