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Moving Average Stocks Strategies

About the Moving Average Stocks Strategy

Stocks Trading Moving average is one of the most widely used Stocks Indicator because it is simple and easy to use.

This Stocks Indicator is a stocks trend following indicator that is used by Stocks traders for three things:

  • Identify the beginning of a new stocks market stocks trend
  • Measure the sustainability of the new stocks trend
  • Identify the end of a stocks trend and signal a reversal stocks trade signal

The Stocks Trading Moving Average or Stocks Trading Moving Average is used to smooth out the volatility of stocks price action. The Moving Average is an overlay stock technical indicator and it is placed on top or superimposed on the stocks price chart.

On the example stocks chart below the blue line represents a 15 period MA, which acts to smooth out the volatility of the stocks price action.

Stocks Trading Moving Average Technical Stocks Indicator - Moving Average Indicator Technical Analysis

Stocks Trading Moving Average Technical Stock Indicator - MetaTrader 4 Stock Chart Indicators

Calculation of the Moving Average

The Stocks Trading Moving Average is also known as Moving Average - is calculated as an average of stocks price using the most recent stocks price data.

If the Moving Average uses the 10 period to calculate the average of the stocks price then it is referred to as a 10 period stocks moving average, because most stocks traders use the day as the standard stocks price period we shall just refer to it as the 10 day Moving Average.

To calculate the ten day Moving Average the stocks price of the last 10 days is averaged, the stocks moving average indicator is then updated constantly after every new stocks price period. So after every new stocks price period is formed the moving average is then calculated afresh using the most recent 10 stocks price periods, that is why it is called a moving average because the average is constantly moving when price data is updated.