MA Strategies Methods

• Price Period of Moving Average
• SMA, EMA, LWMA and SMMA
• MA Trend Identification
• MA Whipsaws in Range Market
• MA Crossover Method
• Moving Average Support and Resistance
• How to Select a MA
• Short-Term and Long-Term Setups
• 20 Pips Price Range Strategy

About the Moving Average Strategy

Forex Moving average is one of the most widely used Trading Indicator because it is simple & easy to use.

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

• Identify the beginning of a new market trend
• Measure the sustainability of the new trend
• Identify the end of a trend & signal a reversal signal

The Moving Average or MA is used to smooth out the volatility of price action. The MA 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 the price action.

Moving Average Indicator - MetaTrader 4 Chart Indicators

Calculation of the Moving Average

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

If the MA uses the 10 period to calculate the average of the price then it is known as 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 MA.

To calculate the ten day MA the price of the last 10 days is averaged, the 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 price periods, that is why it is called a moving average because the average is constantly moving when price data is updated.