Mobile Stocking Summary

Mobile Stocking Summary

• There are two main types of moving averages when trading in Forex: the Simple Moving Average (SMA) and the Exponential Mobile Average (EMA).


• Simple moving averages are the simplest way to work with moving averages but are less reliable against price spikes.çç


• Exponential moving averages place more importance on recent prices and therefore show us what traders are doing right now.


• It is much more important to know what the operators are doing right now than they did the week or last month.


• Simple moving averages are more "quiet" than exponential moving averages.


• Long periods of moving averages are softer (moving less) than periods of short moving averages.
  With exponential moving averages (EMA) you can respond faster to price action and discover trends more quickly as well. However, because of this speed, they are also susceptible to price peaks and give confusing or false perspectives to traders.


• Simple moving averages (SMAs) respond more slowly to price movements but can save you from price spikes. However, because of their slowness, they may be late in taking advantage of a good opportunity to open an operation.


• The best way to use moving averages is to place different types on the chart, this way you can see both long-term and short-term movements.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.