The Most basic Day Trading Indicator Around

In day trading, the average price of a security at a specific time period is named the simple moving avg. It is the earliest and today by far the most commonly used technical indicator in day trading. The probably explanation why the most well-liked among other moving averages is the simple moving avg. has to be that it is by far the easiest one to use. A short reference to it would be the SMA.

The simple moving average or the SMA is used in day trading as a way of smoothing out price fluctuations. This is done by getting the sum of the security prices over a particular period. Say for instance, selecting a thirty-minute graph on which to plot a ten period simple moving avg. In this situation, the closing costs over the last three hundred minutes are to be used. The time range of closing prices came from multiplying the number of periods and the thirty-minute chart utilized. The sum…

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