About MA Trade Strategy - Strategy Example

Index Moving average is one of the most widely used Indices Trade Indicator because it is simple & easy to use.

This Stock Index Trade Indicator is a trend following indicator that's used by Stock Index traders for 3 things:

Identify the starting of a new market trend
Measure the sustainability of the new trend
Identify the ending of a trend & signal a reversal signal

The Indices MA Moving Average or MA is used to smooth out the volatility of the price action. The MA Moving Average is an overlay technical indicator & it is placed on top or super-imposed on the Index price chart.

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

Moving Average Indices Strategies Example - Stock Indices Trade Indicator MA(Moving Average) in Indices Trade Chart Example Explained

Indices MA Moving Average Indicator - MT4 Trade Chart Indicators

Calculation of the MA

The Index Moving Average(MA) is also known as MA - is calculated as an average/mean of the price using the most recent price data.

If the MA Moving Average uses the 10 period to calculate the average of the Indices price then it is referred to as a 10 period 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 Index moving average 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 Indices price periods, that's why it's called a moving average because the average is constantly moving when Stock Index price data is updated.

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About MA Trade Strategy - Strategy Example

Calculation of the MA