A moving average smooths price by averaging it over a set number of periods, making the underlying trend easier to see. Traders watch how price sits above or below it, and how short and long averages cross, to gauge direction and momentum.
Forex Term
Moving Average
A smoothed average of price used to see the trend.
Example
When price stays above its rising 200-day moving average, the longer-term trend is considered up.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.