Moving Averages – Basics

[vc_row][vc_column][boc_spacing height=”10px”][vc_column_text]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:[/vc_column_text][/vc_column][/vc_row][vc_row full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1587534820010{margin-top: 40px !important;margin-bottom: -45px !important;padding-top: 40px !important;padding-right: 15% !important;padding-bottom: 3% !important;padding-left: 15% !important;background-color: #f7f7f7 !important;}”][vc_column][boc_heading alignment=”center” css_classes=”title_page_abb”]More News Posts[/boc_heading][boc_spacing][boc_posts_carousel items_visible=”4″ navigation=”Dots” autoplay=”yes” loop=”yes” exclude_current=”yes” design_preset=”simple” excerpt_word_limit=”10″ show_read_more=”yes” img_hover_effect=”1″][/vc_column][/vc_row]