Introduction to Forex Trading - Basic Forex Trading Course

There are many different types of moving averages. Here is a brief list of the moving averages I've worked with, followed by a brief definition: 1. Simple Moving Average (MA). This is a moving average in which each price of the data series is assigned the same weight or value.

values and dividing by 10. The second moving average value is calculated by dropping the first raw value from the sum and adding the eleventh value to the sum. This leaves a window of 10 data points which are then added and divided by 10. The result is a second value in the moving average series. The process continues with the next raw data point. A moving average of x time units in length always has x data points.

When I refer to a 10-period moving average, I mean specifically 10 days, 10 hours, 10 years, 10 months, or 10 segments of 5 minutes each. The time length of the unit is referred to as the period. Typically in our work with intraday moving averages, we will be dealing with moving averages of from one minute to one hour in length as the period.

Consequently, if I refer to a 10-period simple moving average on the one minute data, I am referring to a moving average calculated by adding together the most recent ten one minute prices and dividing by ten. If I refer to a ten hour moving average I am referring to the last ten hours worth of prices (one price per hour), added together, and divided by ten. 2. E+onential Moving Average (EMA).

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