Trade Gold Trading

Moving Average Trading Strategies

About the Moving Average Strategy

Gold Moving average is one of the most widely used Gold Indicator because it is simple and easy to use.

This Gold Indicator is a trend following indicator that's 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 trading signal

The Gold Moving Average or Gold Moving Average is used to smooth out the volatility of xauusd trading price action. The Moving Average is an overlay indicator & it is placed on top or superimposed on the xauusd trading price chart.

On the example chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of the xauusd trading price action.

How to Use Moving Average Indicator on Chart

Gold MA Technical Indicator - MT4 Gold Chart Indicators

Calculation of the Moving Average

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

If the Moving Average uses the 10 period to calculate the average of the xauusd trading 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 xauusd trading price of the last 10 days is averaged, the gold trading moving average indicator is then updated constantly after every new trading price period. So after every new trading price period is formed the moving average is then calculated afresh using the most recent 10 xauusd trading price periods, that is why it is called a moving average because the average is constantly moving when price data is updated.