MA Strategy

About the Moving Average MA Strategy

Index Moving Average is one of the most widely used Indicator because it's simple and easy to use.

This Indicator is a market trend following trading indicator that is used by the Stock Index traders for 3 things:

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 is used to smooth-out the market volatility of the price action. The MA Moving Average is an overlay indicator & it's placed on top or superimposed on the price chart.

On example chart below the blue line represents a 15 period Moving Average, which acts to smooth-out the volatility of the price action.

Indices Moving Average - Moving Average Strategy Stock Indicator Analysis

Index MA Technical Indicator - MT4 Technical Chart Indicators

Calculation of the Moving Average

The Indices Moving Average MA is also known as Moving Average - is calculated as an average mean of the 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 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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Trade Stock Indices

MA Strategy

About the Moving Average MA Strategy

Calculation of the Moving Average