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MA Strategies

About the MA Moving Average Strategy

The XAUUSD Moving Average (MA) is highly favored due to its inherent simplicity and ease of operational understanding.

This Indicator is a trend following buying and selling indicator this is utilized by on line buyers for three things:

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

The Moving Average (MA) is utilized to reduce the price action's market volatility. It is an overlay technical indicator displayed on the price chart.

In the chart below, the blue line shows a 15 period MA, which makes the price action's ups and downs less intense.

Moving Average Strategy Indicator Analysis - Moving Average Technical Analysis Strategies

XAUUSD MA Technical Indicator - MetaTrader 4 Chart Indicators

Calculation of the Moving Average

The moving average, or MA, averages recent prices to track market moves.

Should the Moving Average utilize a span of 10 periods for averaging the trading price, it is then designated as a 10-period moving average. Given that most traders employ the day as the benchmark period for trading prices, we will simply 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's why it's called a moving average(MA) because the average is constantly moving when price info is updated.

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