Moving Average Strategy
- Oil Price Period of Moving Average
- SMA, EMA, LWMA and SMMA
- Moving Average Oil Trend Identification
- MA Whipsaws in Range Market
- Moving Average Crossover Method
- Moving Average Support and Resistance
- How to Choose a Moving Average
- Short-Term and Long-Term Setups
- 20 Oil Trading Pips Oil Price Range Strategy
About the Moving Average Strategy
Oil Trading Moving average is one of the most widely used Oil Indicator because it's simple and easy to use.
This Oil Technical Indicator is a oil trend following indicator that is used by Oil traders for three things:
- Identify the beginning of a new oil market oil trend
- Measure the sustainability of the new oil trend
- Identify the end of a oil trend and signal a reversal crude oil trade signal
The Oil Trading Moving Average or Oil Trading MA is used to smooth out the volatility of crude trading price action. The MA is an overlay crude oil technical indicator & it is placed on top or superimposed on the crude trading price chart.
On the example oil chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of the crude trading price action.
Oil Trading Moving Average Technical Crude Oil Indicator - MetaTrader 4 Crude Trading Chart Indicators
Calculation of the Moving Average
The Oil Trading Moving Average is also known as MA - is calculated as an average of crude trading price using the most recent crude trading price data.
If the MA uses the 10 period to calculate the average of the crude trading price then it is referred to as a 10 period oil moving average, because most traders use the day as the standard crude trading price period we shall just refer to it as the 10 day MA.
To calculate the ten day MA the crude trading price of the last 10 days is averaged, the oil moving average indicator is then updated constantly after every new crude trading price period. So after every new crude trading price period is formed the moving average is then calculated afresh using the most recent 10 crude trading price periods, that is why it is called a moving average because the average is constantly moving when crude trading price data is updated.
