T3 Moving Average Trading Analysis and T3 Moving Average Trading Signals
T3 uses a Smoothing factor/technique to produce trading signals that are similar to those of the moving averages, but are more accurate than those of the Moving Average. The T3 is a modification of method used to calculate the original Moving Average and it has a smoother curve and it does not lag the market as much as the Moving Average. This Indicator follows price action and adjusts itself to the direction of the market.
Trading Analysis & How to Generate Trading Signals
The T3 moving average is similar to the original MA, & it can be traded in the same way as the original Moving Average indicator.
Moving Average XAUUSD Trading Cross-over Trade Signal
This Method involves using 2 T3 Moving Average & generating trading signals when the two cross each either upward generating an upward trend signal or cross downward generating a downwards gold trend Signal.
Crossover Signal
Bullish Trend - Gold Prices are bullish as long as price action remains above the indicator. When this move happens it implies that prices are bound to continue moving upwards.
Bearish Trend - Gold Prices are bearish as long as price action remains below the T3 Average. When the price is below the indicator it implies that price is bound to continue moving downwards.
Whipsaws - This is a smoothed indicator which is not prone to giving out whipsaws, since it is smoothed it's less responsive to price spikes, therefore a price spike will not skew the data used to calculate & draw it.