Conclusion: Moving Average (MA)

Conclusion: Moving Average (MA)



If we previously discussed a lot of moving averages, now it’s time we conclude the discussion to be an overview.
  1. There are many types of moving averages, but the most commonly used are Simple Moving averages (SMA) and Exponential Moving Average (EMA).
  2. The simple moving average is the simplest type of moving average but is very vulnerable to a momentary price spike.
  3. The Exponential moving average focuses more on current price conditions, which means more prioritizing the condition of the trader at this time.
  4. It is more important to know what a trader is doing now than to know his condition in the past.
  5. The simple moving average is smoother than the exponential moving average.
  6. Moving averages with longer periods are finer than shorter moving averages.
  7. Using exponential moving averages can help you see faster price movements but can provide false signals.
  8. A smooth moving average provides a slower response to prices but can save when there is a sudden surge in prices and false signals but you will be late to enter the market so that you will lose a little chance of profit.
  9. You can use a moving average to determine trends, enter the market and see when a trend will end, and reverse direction.
  10. Moving averages can be used as dynamic support and resistance level points which always change in value according to market price movements.
Now you know whether it’s a moving average, its types, and how to use it. then now is the time for you to practice by opening your trading platform. Good Luck And See You Later Soon!

About Author: Muh Ikhsan

Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.

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