Moving Average (MA)

Moving averages (Moving Average), are the most frequently used indicators of technical analysis. The well-known adage states that: «At the moving average traders earn hundreds of times more money than all the other indicators together».

On the schedule moving averages are the following:


Properties window:


Moving averages vary the method of averaging.
Simple Moving Average - simple moving average
Exponential Moving Average - exponential moving average
Smoothed Moving Average - smooth moving average
Linear Weighted Moving Average - linear-weighted moving average

* Moving average. R - averaged value.



* Weighted Average (Weighted Moving Average)
P1, P2, P3 - averaged values



* Exponential Average (Exponential Moving Average)
P1, P2, P3 - averaged values



Moving average smooths fluctuations in the study of currency, with an average of a certain historical period. The advantage of this technical indicator is the ability to visually cut off the small fluctuations, and clearly see the direction of movement.

The disadvantage of moving averages is the average lag in relation to the rate of the study variables. It follows that the larger the averaging period, the more important signals they give, but at the same time, and more late. The value of the moving average - that it gives the general direction of motion. Moving averages, as sotsopros crowd, where will the price. If they rise, the expectations of a good crowd. Fall, respectively, bad.

Systems based on moving averages

The most simple system, based on the moving average, buy it while it's growing and selling, as it decays.

Plus Strategy: simplicity.

Less: Due to the delay of one bar, spike, making this strategy maloprimenimoy.


The interaction of price and AI

The most famous of these strategies is as follows:
Buy when the MA increases and the closing price is higher than MA;
Sell when the price closing below the MA;
Sell when the MA is reduced, and prices closed below MA;
Cover the sale, when prices closed above MA.


This strategy gives the money, although it is rarely used, because there is much more efficient system.

The intersection of the middle

Buy when the price crosses the average upward. Sell when the price crosses the average down.

Perhaps the oldest of the currently used strategies. Nevertheless, we have sold tens (if not hundreds) of traders, who successfully apply this simple strategy.


In this strategy there is only one negative: it is usually to add a «Filter volatility». Say, do not sell it when the RSI is near zero. And also, it is not applicable to trade in nizkovolatilnye (holiday) days and at night.

For beginners this is probably the best strategy. Suppose you do not earn money on it, all the world, but through it you can feel the taste of money in the market Forex!