MA Strategy

• Price Period of MA
• SMA, EMA, LWMA & SMMA
• Moving Average Commodities Trend Identification
• MA Whipsaws in Range Market
• MA Crossover Strategy Method
• Moving Average Support & Resistance
• How to Choose a MA
• Short Term & Long Term Setups
• 20 Commodity Trading Pips Commodities Price Range Strategy

About the Moving Average Strategy

Commodity Trading Moving average is one of the most widely used Commodities Indicator because it is simple and easy to use.

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

• Identify the beginning of a new market trend
• Measure the sustainability of the new trend
• Identify the end of a trend & signal a reversal trade signal

The Commodity Trading Moving Average or Commodity Trading MA is used to smooth out the volatility of commodities trading price action. The MA is an overlay commodities indicator and it is placed on top or superimposed on the trading price chart.

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

Commodity Trading MA Technical Indicator - MT4 Trading Chart Indicators

Calculation of the Moving Average

The Commodity Trading Moving Average is also known as MA - is calculated as an average of commodities trading price using the most recent commodities trading price data.

If the MA uses the 10 period to calculate the average of the trading price then it is referred to as a 10 period commodity moving average, because most traders use the day as the standard commodities trading price period we shall just refer to it as the 10 day Moving Average.

To calculate the ten day MA the trading price of the last 10 days is averaged, the commodity moving average indicator is then updated constantly after every new trading price period. So after every new trading price period is formed the moving average is then calculated afresh using the most recent 10 commodities trading price periods, that is why it is called a moving average because the average is constantly moving when commodities trading price data is updated.