Moving average is one of the most widely used TA indicators. Moving average is calculated by finding the average price of the trading instrument over a set number of periods. It is called a ‘moving” average because as the newest period is added, the oldest period is dropped. MA crossovers are used in many trading systems as buy or sell signals. Usually combinations of two or three MA intervals are used. Another popular way of observing buy and sell signals is by using single, longer term MA such as 20 day MA. Buy signals occur when the current price crosses MA from below to above. The sell signal occurs when current price crosses MA from above to below. Read more »

Why Does Technical Analysis Work?

Once you’ve got your hardware set up ready, you’ll need to know what kind of odds you’re up against. This will help you plan your strategy accordingly. Currency traders usually use technical analysis to determine the risk factors involved. Technical analysis describes different ways of predicting the future of the underlying market based on its history. Read more »