Moving Average (MA)
Definition
A moving average smooths out price data by calculating the average price over a specified period. The Simple Moving Average (SMA) gives equal weight to all prices; the Exponential Moving Average (EMA) gives more weight to recent prices. Common periods are 20, 50, 100, and 200. MAs are used to identify trends, support/resistance, and crossover signals.
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Trend-Following Strategy for Automated TradingTrend-following EAs, moving averages, timeframes, and common failure modes.
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