The moving average is a simple technical analysis tool that creates a constantly updated average price. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks, or any time period the trader chooses. In Forex and in finance/trading in general, the simple moving average (SMA) is the simplest type of average used in technical analysis. Basically, a simple moving average is calculated by adding up the last “X” period’s closing prices, and then dividing that number by X (the number of price points). Each average is plotted onto the chart and connected to form a line.
In the Trading Station, many multiple types of moving averages and indicators that use moving averages as part of their logic, are available.
How do I add an indicator on Trading Station? Please watch the video [here.]
To add an indicator to your chart:
- Right Click on the chart -> “Add Indicator”
- Select your preferred indicator and double click to add it. (Type "average" into the filter at the top of the list in the Add Indicator box, to see the available options.)
For more averages you can use on the platforms, see FXCM Apps