Saturday, 1 December 2007
Forex Exponential Moving Average Based Systems
A Moving Average is the technical indicator that shows the average value of a particular currency pair over a previously determined amount of time. This means, for example, that prices can be averaged over 30 to 60 days, or 20 to 40 minutes depending on the time frame you are using at the moment of your trading activity. The basic mechanics of Moving Averages tell you where the forex market is moving, either up or down, at the moment of your analysis by considering two different time frame Moving Averages and plotting them on a chart. It is very important that one of these MA is over a shorter time period than the other one. Many brokers offer this as part of their basic trading platforms. Read the rest.