08-23-2017, 09:43 PM

A moving average is simply a way to smooth out price action over time.

By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods.

On a chart, it would look like this:

Like every indicator, a moving average indicator is used to help us forecast future prices.

By looking at the slope of the moving average, you can better determine the potential direction of market prices.

As we said, moving averages smooth out price action.

There are different types of moving averages and each of them has their own level of “smoothness”.

Generally, the smoother the moving average, the slower it is to react to the price movement.

The choppier the moving average, the quicker it is to react to the price movement.

To make a moving average smoother, you should get the average closing prices over a longer time period.

Now, you’re probably thinking, “C’mon, let’s get to the good stuff. How can I use this to trade?”

In this section, we first need to explain to you the two major types of moving averages:

After you’ve got that on lockdown like Argentinian soccer player Lionel Messi’s ball-handling skills, we’ll teach you the different ways to use moving averages and how to incorporate them into your trading strategy.

By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods.

On a chart, it would look like this:

Like every indicator, a moving average indicator is used to help us forecast future prices.

By looking at the slope of the moving average, you can better determine the potential direction of market prices.

As we said, moving averages smooth out price action.

There are different types of moving averages and each of them has their own level of “smoothness”.

Generally, the smoother the moving average, the slower it is to react to the price movement.

The choppier the moving average, the quicker it is to react to the price movement.

To make a moving average smoother, you should get the average closing prices over a longer time period.

Now, you’re probably thinking, “C’mon, let’s get to the good stuff. How can I use this to trade?”

In this section, we first need to explain to you the two major types of moving averages:

- Simple

- Exponential

After you’ve got that on lockdown like Argentinian soccer player Lionel Messi’s ball-handling skills, we’ll teach you the different ways to use moving averages and how to incorporate them into your trading strategy.