What is MA Indicator?
Simple moving average (SMA); Exponential Moving Average (EMA); There are multiple types of calculations such as Weighted Moving Average (WMA).
Moving averages are used to average the closing prices of the days within a certain time range. The word “moving” refers to the averages that change with the data day by day.
Simple Moving Average (SMA): The closing prices of the instrument in the specified date range are summed up and divided by the number of days. Each day is equal in weight.
Exponential Moving Average (EMA) and Weighted Moving Average (WMA); The last days matter in both. The difference between the two is that WMA focuses only on the specified time period, while EMA includes the entire history of the stock.
For example, in WMA, for 20-day analysis, today’s closing value is multiplied by 20, yesterday’s 19, and the previous day’s 18.
20 days are given here as an example only. The number of days should change depending on whether your investment is long term or short term. To explain with another example, it would be meaningless to look at the 5-day average for the stock you intend to use for 5 years. In order to make predictions about 5 years in the future, you have to compare the value of the note at the date you are today with the 5 years ago. In short, the duration of your investment is proportional to the number of days you will look at.
How to add MA Indicator?
Like other indicators, MA can easily be accessed on the Meta Trader platform, which is traded online in Forex and Stock markets. You can select the indicators on the left side of the program that you can download from Google Play and App Store, and interpret the graphics with the tips we give you.