Trade Stock Indices

Learn Stock Indices Trading for Beginners Tutorials

Moving Average 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 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 price action. The Moving Average is an overlay 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 Moving Average Technical Indicator - Moving Average Strategy Indicator Analysis

Indices Moving Average Technical 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 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 referred to as a 10 period indices trading moving average, because most traders use the day as the standard 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 price periods, that is why it is called a moving average because the average is constantly moving when price data is updated.


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