Best Moving Average for 15-Minute Chart

Choosing the Best Moving Average for a 15-Minute Chart

Moving averages (MAs) are essential tools for traders, smoothing price data to identify trends and potential entry/exit points. On a 15-minute chart, which is popular for short-term trading (e.g., scalping or day trading), the choice of MA type and period depends on your strategy and market conditions. Below, we explore the best options.

Key Concepts

• SMA (Simple Moving Average): Averages prices equally over a period, good for clear trends.
• EMA (Exponential Moving Average): Weights recent prices more, making it more responsive to changes.
• Period: The number of bars (e.g., 10, 20, 50) affects sensitivity—shorter periods are faster, longer ones smoother.

Recommended Moving Average: 20 EMA

For a 15-minute chart, the 20-period Exponential Moving Average (20 EMA) is widely regarded as the best choice for short-term trading. Here’s why:

• Responsiveness: The EMA reacts quickly to price changes, ideal for the fast pace of a 15-minute timeframe.
• Balance: A 20-period setting strikes a balance between filtering noise and capturing short-term trends.
• Popularity: Many traders use it, making it a self-fulfilling level of support/resistance.

Alternatives

Depending on your trading style, other MAs might suit you:

• 10 EMA: Faster, better for scalping or very volatile markets.
• 50 SMA: Slower, useful for confirming longer trends within the 15-minute timeframe.
• 9 EMA: Ultra-responsive, often used by aggressive scalpers.

Using the 20 EMA in MQL4

In MetaTrader 4, you can apply the 20 EMA using the built-in Moving Average indicator or code it with MQL4:

// Example: Calculate 20 EMA in MQL4
double Get20EMA(int shift)
{
   return iMA(NULL, PERIOD_M15, 20, 0, MODE_EMA, PRICE_CLOSE, shift);
}

void OnStart()
{
   double emaValue = Get20EMA(0);
   Print("20 EMA on current 15-min bar: ", emaValue);
}
            

Trading Tips

• Use the 20 EMA with price action (e.g., bounces or breaks) for entries.
• Combine with other indicators (e.g., RSI or MACD) for confirmation.
• Test on a demo account to adjust for your market (e.g., forex, stocks).

Try It Yourself

Add the 20 EMA to a 15-minute chart in MetaTrader 4 and observe how price interacts with it during trends and reversals.