The Moving Average

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    15-Aug-2015

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<ol><li> 1. The Academy of Financial Trading The Moving Average www.academyft.comsupport@academyft.com </li><li> 2. Moving Average explained Any Advice or information provided by the Academy of Financial Trading is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material provided by the Academy of Financial Trading or using any information or tools you agree that this is general educational material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by The Academy of Financial Trading, its employees, directors or fellow members. Futures, Contracts for Difference (CFDs), Options, and spot currency trading have large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in CFDs and leveraged forex markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material provided by the Academy of Financial Trading. The past performance of any trading system or methodology is not necessarily indicative of future results. Risk Warning </li><li> 3. What is a moving average in financial technical analysis? In its simplest form a moving average is just an arithmetic mean of values shown as lagging on a chart Moving average Most traders who are using retail and oversimplified methods tend to use moving average crossovers to signal chart reversals It really just measures the changing of a markets price relative to time with a slight lag It can be used with moving averages of other time frames to signal entries and or exits Moving Average explained </li><li> 4. The Simple Moving Average It is calculated simply by adding together the prices over a set period of days ad then dividing by the number of days over which this is measured It is slightly lagged though as we will see upon further inspection in a moment Traders using these methods can often be over reliant on a simple indicator that can of course work in some cases, but has an insufficient accuracy level and as such isnt something the professionals favour Moving average Moving Average explained </li><li> 5. The Conclusion Too simple certainly moving averages are useful, but as a means to an end are insufficient They have a low accuracy but can be correct as traders we want to capitalise as many opportunities as possible moving averages are only correct a very small amount of the time They can be tough indicators to combine stop losses with or specific exit points as they are slightly lagged Moving Average Overall perhaps a useful tool for momentum but insufficient for using in a long term strategy and over a broad range of asset classes Moving Average explained </li><li> 6. www.academyft.com support@academyft.com Contact us anytime on Ire: +353 (0) 1 553 0174 UK: +44 (0) 207 760 1614 USA: +1 347 627 0001 Keep Learning! academyft.com </li></ol>

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