Moving Averages are by far the most widely used and easy to understand forex indicator. They display right on top of your chart and mechanics are very easy to understand – a moving average or MA – is quite simply the average price over a given period.
This is one of the more common Moving Averages – SMA100 – the Simple Moving Average of the close price for the last 100 bars. We have placed the SMA100 over the GBP/USD forex pair on a 4 hour chart.
The simplest form of MA analysis is checking where price is in relation to the MA – is price above the 100SMA? Look to buy. Is price below? Look to sell.
That is, when GBP/USD is above the 100SMA, we will look to buy lows, when it below the 100SMA, we will look to sell highs:
More News Posts
China manufacturing PMI shrinks more than expected in April as US trade war bites
Chinese manufacturing activity shrank more than expected in April as…
US stock futures muted ahead of econ data barrage, megacap earnings
U.S. stock futures were largely muted Monday evening after subdued…
Australia’s Alkane to acquire Canada’s Mandalay to form a $650 mln gold producer
Australia’s Alkane Resources Ltd (ASX:ALK) will acquire Canada’s Mandalay Resources…
Trump said ’doing fine’ with China, has no plans to fire Powell
U.S. President Donald Trump delivered remarks on the state of…
US stock futures rise after Trump remarks rattle Wall St; tech earnings due
U.S. stock index futures rose in early Asian trade on…
China CPI, PPI inflation fall more than expected in March as US trade war heats up
Chinese consumer inflation shrank more than expected in March, reflecting…
Australia consumer sentiment hits 6-mth low in April on US tariff worries- Westpac
Australian consumer sentiment fell to a six-month low in early…
Black Monday or Face Ripping Rally?
Following last week’s unprecedented two-day bloodbath in stocks post-tariffs, investors…
Oil prices extend steep declines as OPEC+ output hike, Trump tariffs weigh
Oil prices extended losses in Asian trading on Friday after…
Trump unveils sweeping tariffs on all imports and higher levies on “bad actors”
President Donald Trump said Wednesday the United States will impose…
