Moving Average Analysis

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Moving Average Analysis

Moving Average (MA) is an indicator that is widely used by most traders to determine where the trending direction of a trading session is. And almost all trading platforms also present this indicator in it. The name is average or “average” so the value is taken from the average price for a certain period of time such as 5 days, 20 days, or 100 days to form a trending line.


Based on the sensitivity, MA can be divided into Simple Moving Average and Exponential Moving Average.
 The sharper the MA (the longer the period), the slower the reaction to price movements and vice versa.Moving Average (MA) is indicated by the blue line as shown above.
 And how do we use it? that is, by looking at the slope of the line against the candlestick a price. When the candlestick is below the MA line, it can be said that in that period the market is in a downtrend and vice versa if it is above the MA line it is said to be in an uptrend.

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