Trade Gold Trading

Moving Average CFDs Methods

About the Moving Average CFD Strategy

CFD Trading Moving average is one of the most widely used Indicator because it's simple and easy to use.

This Indicator is a cfd trend following indicator that is used by traders for three things:

  • Identify the beginning of a new market cfd trend
  • Measure the sustainability of the new trend
  • Identify the end of a cfd trend and signal a reversal trading signal

The CFD Trading Moving Average or CFD Trading Moving Average is used to smooth out the volatility of price action. The Moving Average is an overlay technical indicator & it is placed on top or superimposed on the price chart.

On the example cfd chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of the price action.

MetaTrader 4 CFD Chart Indicators - Moving Average Strategy Indicator Technical CFD Indicator Analysis

CFD Trading Moving Average Technical Indicator - MetaTrader 4 Chart Indicators

Calculation of the Moving Average

The CFD Trading 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 known as to as a 10 period cfd moving average, because most traders use the day as the standard cfds 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 cfd moving average indicator is then updated constantly after every new cfds price period. So after every new cfds price period is formed the moving average is then calculated afresh using the most recent 10 cfds price periods, that is why it is called a moving average because the average is constantly moving when price data is updated.