MA Strategy
- Price Period of MA
- SMA, EMA, LWMA & SMMA
- Moving Average Trend Identification
- MA Whipsaws in Range Market
- MA Crossover Strategy
- Moving Average Support & Resistance
- How to Choose a MA
- Short-Term and Long-Term Setups
- 20 Indices Pips Price Range Strategy
About the Moving Average Strategy
Indices Moving average is one of the most widely used Indicator because it is simple and easy to use.
This 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 indices trading signal
The Indices Moving Average or Indices Moving Average is used to smooth out the volatility of price action. The Moving Average is an overlay technical indicator & 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.
Indices MA Technical Indicator - MT4 Technical Chart Indicators
Calculation of the Moving Average
The Indices Moving Average is also known as Moving Average - is calculated as an average of price using the most recent price data.
If the Moving Average uses the 10 period to calculate the average of the price then it is known as to as a 10 period indices trading moving average, because most traders use the day as the standard stock price period we shall just refer to it as the 10 day MA.
To calculate the ten day Moving Average the price of the last 10 days is averaged, the indices trading 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 is why it is called a moving average because the average is constantly moving when stock price data is updated.