Trade Stock Indices

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Moving Average Strategy

About the Moving Average 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's 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 & signal a reversal indices trading signal

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

Indices Moving Average Technical Indices Indicator - Moving Average Strategy Stock Index Indicator Analysis

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

Calculation of the Moving Average

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

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

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