Now there is a huge range of strategies and tactics to Forex constantly bring you profit . One such strategy – a strategy for moving averages. This strategy is very common and many people using it already managed to get a handsome profit . This method is the oldest method of analysis.
Strategy is based on the application of the average price for a certain period . This period analyst calculates itself . In that case, when the price exceeds the moving average , it may indicate that the market began an upward movement. If the price level is below the moving average , then we can speak of a downward market.
There are several types of moving averages:
SMA. This is a simple moving average . It reflects the arithmetic average price level for a certain period.
EMA. In this moving average exponential smoothing is applied .
VMA. This moving average is volume- dependent , and takes into account not only performance , but also their weight. The more indicators of the time interval , the greater its weight.
Moving average can be based on several indicators. Among the main indicators can highlight the opening price , closing price , minimum and maximum price .
Among the most simple method of this strategy can be identified with increasing purchasing moving average , and sell when its decay .
You can also meet and such a strategy : buy worth then, and only then , when the price line crosses below the moving average up and sell only when it crosses her up and down .
Most effective in strategy moving averages when noticeable pronounced trend .
If you apply this strategy when the market is being corrected , it can generate a very large number of false alarms , resulting in you can lose some amount of money.
Remember that to use any strategy must be approached carefully , because at stake is your own money .
