Moving Average Forex Strategies
- Price Period of MA
- SMA, EMA, LWMA & SMMA
- MA Trend Identification
- MA Whipsaws in Range Bound Market
- Moving Average Cross-over Strategy
- MA Support & Resistance
- How to Choose & Select a MA
- Short-Term and Long-Term Setups
- 20 Pips Price Range Trading Method
About the Moving Average Forex Strategy
Forex Moving average is one of the most widely used Forex Indicator because it is simple & easy to use.
This Trading Indicator is a market trend following trading indicator that's used by the traders for 3 things:
- Identify the beginning of a new trend
- Measure the sustainability of the new trend
- Identify the end of a trend & signal a reversal trading signal
The Moving Average or Forex MA is used to smooth out the volatility of the price action. The MA is an overlay technical indicator & it is placed on top or super-imposed on the price chart.
On exemplification chart below the blue line represents a 15 period Moving Average, which acts to smooth out the volatility of price action.
Forex Moving Average - MetaTrader 4 Forex Chart Indicators
Calculation of the Moving Average
The Moving Average is also known as MA(Moving Average) - is calculated as an average of price using the most recent price data.
If the MA uses the 10 period to calculate the average/mean of the price then it is known as to as a 10 period forex moving average, because most traders use the day as the standard price period we shall just refer to it as the 10 day Moving Average.
To calculate the ten day MA the price of the last 10 days is averaged, the forex moving average MA indicator is then updated constantly after every new price period. So after every 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 the price data is updated.
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