Moving Averages

Moving averages are one of the oldest and most commonly used technical indicators. They have become a staple part of many trading strategies because they’re simple to use. In a few words, they "smooth out" fluctuations to help you distinguish a trend. Mainly, traders are using the following 3 types of MAs.

By clicking F7 or right clicking on the chart and clicking on the FXTNavigatorEA, traders can select Moving Average type among “Simple”, “Exponential”, “Smoothed” and “Linear weighted”.

Moving average trading refers to the practice of systematically buying and selling whenever the price crosses its average. The idea is that prices move in trends such that at each point in time the price is either in an uptrend or in a downtrend. An uptrend is defined as when the price is above its moving average and a downtrend is defined as a period where the price is below its moving average.