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Moving Average in Forex

This presentation describes how moving average is important in forex trading.<br>Equidious Research is best forex signal provider company with global presence across the world. Get accurate signals with 100% transparency and good returns.<br>Try yourself today at: www.equidiousresearch.com

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Moving Average in Forex

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  1. FOR BEST FOREX SIGNALS EQUIDIOUS RESEARCH www.equidiousresearch.com +1(347)434-9044

  2. NEED OF MOVING AVERAGE IN FOREX The Moving Average, MA for short, is probably the most popular trend following indicator used by Forex traders. In this presentation, we will discuss more about Moving Average (MA) www.equidiousresearch.com +1(347)434-9044

  3. WHAT IS MOVING AVERAGE? • A moving average is a type of lagging indicator that accumulates past price points and then averages them to provide a technical analyst with a better sense of where a security went over a period of time.  • There are a handful of different MA, including • simple moving average (SMA) • exponential moving average (EMA). www.equidiousresearch.com +1(347)434-9044

  4. IMPORTANCE OF MA • Moving averages help forex traders make effective transactions by aiding them in evaluating the price history of a currency pair or related investment. • More specifically, these averages make it easier for investors to interpret the price fluctuations of an asset by smoothing out their random movements. www.equidiousresearch.com +1(347)434-9044

  5. IMPORTANCE OF MA www.equidiousresearch.com +1(347)434-9044

  6. DETERMINE THE TREND The simplest way is to just plot a single moving average on the chart. When price action tends to stay above the moving average, it signals that price is in a general UPTREND. If price action tends to stay below the moving average, then it indicates that it is in a DOWNTREND. www.equidiousresearch.com +1(347)434-9044

  7. CALCULATING THE SMA To calculate the SMA, one must start by gathering a security’s closing prices over a fixed number of trading sessions. If a trader wants to determine the 20-day SMA of the EUR/USD, he can add up all the currency pair’s closing prices over the time and then divide by 20. Alternatively, figuring out the 200-day SMA of the same currency pair would require totalling its closing values during that time and then dividing that sum by 200. www.equidiousresearch.com +1(347)434-9044

  8. CALCULATING THE EMA • To calculate EMA, one can use the following formula: • Multiplier = (2/(number of time periods) + 1) • For a 10-day EMA: (2/(10 + 1)) = 0.1818 or 18.18% • For a 20-day EMA: (2/(20 + 1)) = 0.0952 or 9.52% • Once this multiplier has been acquired, the following equation can be used to determine the EMA: • Multiplier x (closing price – EMA(previous day)) + EMA(previous day)

  9. Join 300,000+ traders who stay ahead of the market, submit your details with us by filling our CONTACT FORM. For the Best Forex Signal| Accurate Stock Signal| Profitable Comex Signals, Try Equidious Research Services. We have a team of best and well experienced Research Analysts. .THANK.YOU.

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