The Moving Average, MA for short, is probably the most popular trend following indicator used by Forex traders Here's what it is and how to use it... This subject and many others are covered in more detail in the FREE Forex Guide available at Forex Useful - http://forexuseful.com/new/members/21812-forex-guide/

1. The Moving Average
The Moving Average, MA for short, is probably the
most popular trend following indicator used by
Forex traders
Here's what it is and how to use it...

2. A Moving Average reflects the Average Closing price of a
market over a specific Number of periods (candles)
They can also be based on candle open, high or low but
usually the closing price is used
This 20 Period MA
(written MA(20))
On this Daily chart reflects
the Average Closing price
during the last month
(20 working days/candles)
The Moving Average
In simple terms...

3. MA is Turning – Trend may be ending
MA is Flat – Trend is weak
MA is Steep – Trend is Strong
MA is Rising
= Uptrend
The Moving Average
Primary use...
Moving Averages (MAs) are primarily used for
trend identification and analysis
MA is Falling
= Downtrend

4. In this relatively Strong Uptrend on a Weekly chart and
support is evident at or around the popular rising MA(50)
The Moving Average
Secondary use...
The secondary use for MAs is to define areas where
price may encounter Support and/or Resistance

5. Weekly
MA(50)
Daily
MA(20)
MA(200)
Intraday
MA(4),
MA(9 or 10)
MA(18 or 20)
MA(40)
Popular Moving Average Settings
Lower value MAs are
classed as “Slow” MAs
Higher value MAs are
classed as “Fast” MAs

6. Produced by
Try a combination of Moving Averages
Use popular settings for your timeframe as a base
For trend observation try a Faster MA
For Support & Resistance try a Slower MA
The Moving Average