Trade Forex Trading

MA Strategies

About the MA Strategy

XAUUSD Moving average is one of the most widely used Indicator because it is simple and easy to use.

This Indicator is a trend following indicator that's used by traders for three things:

  • Identify the beginning of a new market trend
  • Measure the sustainability of new trend
  • Identify the ending of a trend and signal a reversal xauusd signal

The Moving Average or Moving Average is used to smooth out the volatility of price action. The Moving Average is an overlay technical indicator and it is placed on top or superimposed on the price chart.

On the example chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of price action.

Moving Average Strategy Indicator Technical Analysis - Moving Average Technical Analysis Strategies

XAUUSD MA Technical Indicator - MetaTrader 4 Chart Indicators

Calculation of the Moving Average

The Moving Average is also known as MA - is calculated as an average of trading price using the recent most trading price data.

If the Moving Average uses the 10 period to calculate the average of the trading price then it is known as to as a 10 period moving average, because most traders use the day as the standard trading price period we shall just refer to it as the 10 day MA.

To calculate the ten day Moving Average the price of the last 10 days is averaged, the moving average indicator is then updated constantly after every new price period. So after each new price period is formed the moving average is then calculated afresh using the most recent 10 price periods, that is why it is called a moving average because the average is constantly moving when the price data is updated.

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