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Showing posts with the label moving averages

Understanding and Utilizing Simple, Exponential, and Weighted Moving Averages in Your Investment Strategy

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  by: Ivan Cavric A moving average is a technical analysis tool that helps smooth out price action by filtering out the “noise” from random price fluctuations. It does this by calculating the average price of a security over a specific time period, and then plotting that average as a line on a chart. There are three main types of moving averages: simple moving average (SMA), exponential moving average (EMA), and weighted moving average (WMA). In this article, we’ll take a closer look at each of these types of moving averages, as well as some strategies for using them. Simple Moving Average (SMA) A simple moving average (SMA) is the most basic type of moving average. It is calculated by taking the sum of the closing prices of a security over a specific number of time periods, and then dividing that sum by the number of time periods. For example, if you wanted to calculate a 50-day SMA for a stock, you would add up the closing prices for the past 50 days and then divide that sum by 5...

Factors Involved In Becoming A Successful Forex Trader

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By:  Ivan Cavric These days everyone is talking about Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it. Forex trading has changed dramatically in the last 10 years thanks to the technological advancements of the internet era. With real-time streaming technology and faster and more efficient computer systems, almost anything, from roses to FX trading, is available at the click of a button.  Some of the great reasons why Forex trading is a great way of entering the capital markets is that your trades are all commission-free and it has a low transaction cost. All the best forex brokers have these characteristics and even Mini FX traders (i.e., traders starting with accounts having a capital as low as $250), who are just starting in this field, can buy and sell currencies online always commission-free....