Trade Stock Indices

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Moving Average Indices Trading Strategies

About the Moving Average Indices Trading Strategy

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

This Indices Indicator is a indices trend following indicator that is used by Indices traders for three things:

  • Identify the beginning of a new stock indices market indices trend

  • Measure the sustainability of the new indices trend

  • Identify the end of a indices trend and signal a reversal indices trading signal

The Indices Moving Average or Indices MA is used to smooth out the volatility of stock indexes price action. The MA is an overlay stock indexes technical indicator and it is placed on top or superimposed on the stock indexes price chart.

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

Indices Moving Average Technical Indices Indicator

Indices Moving Average Technical Stock Indexes Indicator - MT4 Indices Technical Chart Indicators

Calculation of the Moving Average

The Indices Moving Average is also known as MA - is calculated as an average of stock indexes price using the most recent stock indexes price data.

If the MA uses the 10 period to calculate the average of the stock indexes price then it is referred to as a 10 period indices trading moving average, because most indices traders use the day as the standard stock indexes price period we shall just refer to it as the 10 day MA.

To calculate the ten day MA the stock indexes price of the last 10 days is averaged, the indices trading moving average indicator is then updated constantly after every new stock indexes price period. So after every new stock indexes price period is formed the moving average is then calculated afresh using the most recent 10 stock indexes price periods, that is why it is called a moving average because the average is constantly moving when stock indexes price data is updated.


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