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Moving Average

Discussion in 'Traders Glossary' started by Pharaoh, Jun 30, 2008.

  1. Pharaoh

    Pharaoh Colonel

    Oct 3, 2007
    Likes Received:
    A common technical indicator, consisting of the average closing value of the currency pair over a selected number of time periods. For example, MA (12) would indicate an average of the closing price of the last 12 time periods.

    Moving averages are considered lagging indicators. The shorted the number of time periods used, and the shorter the time frame, the less lag there is, but this also increases the amount of statistical noise.

    Some simple trading strategies use a crossover between a shorter moving average and a longer moving average.

    See SMA and EMA for more info on moving averages.
    #1 Pharaoh, Jun 30, 2008
    Last edited: Jun 30, 2008





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