150 day Exponential Moving Average Indicator

Forex Indicator Moving Averages

Indicator Forex Moving averages is the most popular indicators in technical analysis. They smooth the Forex price over time and make it easier to identify trends. This can be particularly useful in volatile times.

There are two types of moving averages:
Indicator Forex Simple moving averages (SMAs)
SMAs calculate the average price development over time.
If we have for example five daily bars that close to the prices 10,15,20,25,30, the SMA has the value (10 +15 +20 +25 +30) / 5 = 20 If the price rises on 6 To 100 days now, has the value of the SMA (10 +15 +20 +25 +30 +100) / 6 = 33.34.

Forex Indicator Exponential Moving Averages (EMAs)
Forex indicator Exponential moving average EMA as well as SMA simple moving average Forex indicator calculate the average price development, but with the difference that a greater emphasis on the past short rates. The calculation is fairly complex and I did without further explanation here, since most trading programs automatically calculate the EMAs in seconds.

Moving averages are among other Forex indicator, often to react as resistance and support. As you can see from the attached chart, the price is 5 times in the vicinity of the 150 EMAs come and jump back. This could be concluded that we were still on the rise. So if we had found in the vicinity of the 150 EMA line ups good to buy, we had always been in excellent trades.

150 day exponential moving average indicator150 day exponential moving average indicator
In addition, moving averages indicator can show us whether we are still in trend forex market, or whether a trend change has taken place. Once again, we can again use the Forex 150 EMA. As the Forex chart from March to July was in a sideways trend began to flatten the slope of the EMAs. Finally, the price began to break through the EMA and was pointed out very strongly to the bottom. The breaching of the EMA Forex indicator was also an indication of a trend change. Long-term Forex traders could set their stop loss below the moving average Forex indicator, as long as possible in order to remain in vogue.
150 day exponential moving average indicator forex150 day exponential moving average indicator forex
Popular moving average indicator for many Forex traders are the 150 and 365 EMAs because they often act as support and resistance and show long-term trends.


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