Moving averages

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Welcome to currency trading with Profiforex!
This video is devoted to moving averages.
To apply a moving average to the chart, use the menu sequence "Insert" - "Indicators" - "Trend" - "Moving average."

Later, for all standard indicators we'll use the "Indicators" button on the toolbar.So, in this case we could press the "Indicators" button and choose "Trend" - "Moving average" from the menu that appears. 

Subsequently, the window in which we change the indicator properties appears.

We can select the averaging period, an averaging method, shift, and also visual settings.

The simple sliding average is Simpl.

It is calculated on the following formula Where P is the price, and the N is the averaging period.

Weighed are the averages calculated on following formula where P is a price.

Exponential averages are calculated on the following formula and now are the most popular.

After a choice of parameters click OK

Скользящие средние также называют мувингами.

Moovings smooth oscillations of studied currency, by means of averaging on some historical period.

The advantage of this technical indicator is opportunity to cut small fluctuations and to see the movement direction.

By lack of sliding averages is called a delay of average values in relation to course of a studied volume .fluctation and it helps to see the movement direction.

From this it follows that than averaging period is higher,the more important signals they give, but, at the same time, are late.

The value of mooving - that they present the general movement. It as an opinion poll of a crowd where the price will go. If they raise, it means that the crowd waitings are good.

If fall they are bad.

On the graphic we can set some sliding averages. And even a whole fan.

Later we will study some strategies based on sliding averages.