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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