Proper Definition of Forex Moving Average

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Proper Definition of Forex Moving Average

Hello, traders, I am going to show today about moving average indicators.

Type of moving average

SMA – simple moving average – suggests the common price for a given time frame.

EMA – exponential moving average – gives priority to the latest information, hence reacts to price changes quicker than the simple moving average.

WMA– weighted moving average – places emphasis on maximum recent facts an much less – on older data.

moving average indicator is a dynamic support and resistance this indicator help us for identifying a trend. if moving average above the market price that’s mean it is a downtrend. Similarly if indicator below the market price that’s mean it is an uptrend. Similarly, this indicator helps us identify accurate support and resistance levels.

Below the chart for example 
note : 1: the red line is SMA.
          2: the green line is EMA
          3: the black line is WMA

most of the traders using some common period moving averages 
like – 20 SMA, 30 SMA, 50 SMA, 100 EMA, 200 SMA, 200 EMA, 390 SMA, ETC.

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2 thoughts on “Proper Definition of Forex Moving Average

  1. Hello,
    Thanks for sharing. This is very informational and a correct explanation of "simple moving averages" the formula used by most analysts. Please give a G+ Follow (Maikeisha Cuyler) and view my blog at

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