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MA Strategies

About the Moving Average(MA) Strategy

The Gold Moving Average stands out as one of the most frequently employed Gold Indicators due to its inherent simplicity and ease of implementation.

This Gold Indicator is a trend-following tool used by Gold traders for three specific purposes:

  • Identify the starting of a new market trend
  • Assess the sustainability of the new market trend
  • Identify the ending of a trend and signal a reversal signal

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

How to Use Moving Average(MA) Technical Indicator on Chart

Gold MA Indicator - MT4 Gold Chart Indicators

Calculation of the Moving Averages(MA)

The Moving Average, also known as MA, is determined by calculating the arithmetic mean of the market price derived from the most recent price figures.

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

To calculate the ten-day Moving Average, the prices from the preceding 10 days are averaged: this moving average trading indicator is then perpetually adjusted following the conclusion of each new trading price period. Consequently, after a new pricing period concludes, the moving average is recalculated using the most recent 10 periods of gold trading prices: this constant recalculation based on updated price data is why it is termed a Moving Average (MA).

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