FOREX THEORY
1. Moving Average
Moving averages are probably the
most common indicator used by forex traders and although it is a simple tool,
it provides invaluable data.
Simply put, moving averages
measures the average movement of the market for an X amount of time, where X is
whatever you want it to be.
For example, if you applied a 20
SMA to a daily chart, it would show you the average movement for the past 20
days.
There are other types of moving
averages such as exponential and weighted, but for the purpose of this lesson
we won’t go too much in detail on them.
For more information on moving
averages or if you just need to refresh yourself on them, check out our lesson
on moving averages.
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