Moving Average Strategy
- Commodities Price Period of Moving Average
- SMA, EMA, LWMA and SMMA
- Moving Average Commodities Trend Identification
- MA Whipsaws in Range Market
- Moving Average Crossover Method
- Moving Average Support and Resistance
- How to Select a Moving Average
- Short Term and 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 Technical Indicator because it is simple and easy to use.
This Commodities Technical Indicator is a commodity trend following technical indicator that is used by Commodities traders for three things:
- Identify the beginning of a new commodity market commodity trend
- Measure the sustainability of the new commodity trend
- Identify the end of a commodity trend & signal a reversal commodities 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 technical indicator and it is placed on top or superimposed on the commodities trading price chart.
On the example commodity chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of the commodities trading price action.
Commodity Trading Moving Average Technical Commodity Technical Indicator - MT4 Commodities 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 commodities 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 commodities trading price of the last 10 days is averaged, the commodity moving average indicator is then updated constantly after every new commodities trading price period. So after every new commodities 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.
