Trade Stock Indices

MA Strategy

About the Moving Average(MA) MA Strategy

The Index Moving Average is recognized as a prevalent indicator due to its simplicity and user-friendliness.

This Indicator serves as a market trend-following tool utilized by Stock Index traders for three specific purposes:

  • Identify the start of a new market trend
  • Assess the sustainability of the new market trend
  • Identify the end of a market trend & signal a reversal indices signal

Index Moving Average MA or Stock Indices Moving Average MA helps to smooth out the ups and downs of the price on the market. The MA Moving Average is a tool that goes over the top of the price chart.

In the sample below, the blue line is a 15-period moving average. It cuts noise from price swings.

Indices Moving Average - Moving Average Strategy Stock Indicator Analysis

Index MA Technical Indicator - MT4 Technical Chart Indicators

Calculation of the Moving Averages(MA)

The Indices Moving Average MA - also called Moving Average - is figured out by finding the mean of the most current price data.

If the Moving Average(MA) uses 10 periods to work out the average price, then it is called a 10 period indices trading moving average. Because most traders use the day as the normal stock price period, we will just call it the 10 day MA.

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

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