Four Moving Average Types and their uses in trading
Introduction Moving average are one of the most popular technical indicators used by traders. They are a simple way to smooth out price data and identify trends. There are many different types of moving averages, each with its own strengths and weaknesses. In this article, we will discuss four of the most popular moving averages: the simple moving average (SMA), the exponential moving average (EMA), the weighted moving average (WMA), and the moving average convergence divergence (MACD). We will also discuss how to use these moving averages to identify trends and make trading decisions. Simple Moving Average (SMA) The simple moving average (SMA) is the most basic type of moving average. It is calculated by taking the average of the closing prices over a specified period of time. For example, a 10-day SMA would be calculated by taking the average of the closing prices for the past 10 days. The SMA is a good starting point for technical analysis. It is easy to calculate and