What is a Moving Average?
Moving Average (MA)
Forex Trading Glossary
Quick Answer: A moving average smooths price data to identify trend direction. The 50 and 200 EMA are popular for determining market trends and support/resistance.
What is a Moving Average?
A moving average (MA) smooths price data by calculating the average price over a specified number of periods. Traders use it to identify trend direction and dynamic support or resistance.
Moving Average Types
- Simple Moving Average (SMA): Equal weight to each period.
- Exponential Moving Average (EMA): More weight on recent data.
- Weighted Moving Average (WMA): Custom weighting schemes.
- Hull Moving Average (HMA): Reduces lag while smoothing noise.
Related Terms
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