Trade Gold Trading

MA Strategy

About the Moving Average Strategy

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

This Energies Indicator is a trend following technical 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 and signal a reversal signal

The Energies Trading Moving Average or Energies 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 chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of the price action.

Energies Trading Moving Average Technical Indicator

Energies Trading Moving Average Indicator - MT4 Energies Chart Indicators

Calculation of the Moving Average

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