How to Use Moving Average Trading

The moving average is a moving average in the form of a line resulting from the calculation of the average price of the highest (high), lowest (low), opening price (open), closing (close), or the middle price (median). The moving average indicator is the tool most often used by traders both forex, gold, etc.

Functions of the Moving Average Indicator

1. Smoothing price movements within a certain time frame, making it easier to identify trends or the direction of price movements.

2. As a reference for determining Support and Resistance

3. As a reference for buying and selling with moving average cross.

Types of Moving Average Indicators

  • Simple Moving Average (SMA) or MA only
  • Exponential Moving Average (EMA)
  • Weighted Moving Average (EMA)



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