Importance of "Moving average" in technical analysis:

Introduction:

Dear members, I hope all are fine and doing well. Forex trading main learning, knowledge aur experience ka hona bohat zarori hai. Forex trading main achy knowledge sy he achi trading ki ja sakti hai. Forex trading main kuch indicators hoty hain jo forex market ki movement aur trend ki understanding main help krty hain. Isi lye in indicators ko understand karna bohat zarori hai. Isi tra aik indicator jo forex trading main use hota hai wo “Moving Average” hai. Isi lye is indicator ko understand karna bohat zarori hai.

Definition of "Moving Average":

Technical analysis main, moving average aik aisa indicator hai jo aik specific period main market ki average band hony wali price ko represent krta hai. Trader is indicator ko current market situation ko judge karny k lye istemal karty hain.

Two ziada use hony wali Moving averages (SMA) Simple moving average, aur (EMA) exponential moving average hai. In dono k darmyan farq ye hai k simple moving average date set main average ka koi weighting nhi deta. Jb k exponential moving average current price ki ziada weighting deta hai.

How to calculate moving average:

Simple moving average sirf series k tamam data points ki average hai. Jo points ki tadad sy taqseem hoti hai. SMA ka challenge ye hai k tamam data points ka weight brabar ho ga. Jo current market ki situation ki true reflection karta hai.

EMA ko is masly ko theak krny k lye tyar kia gya tha q k ye recent prices ki ziada weighting dy ga. Ye EMA ko market main current situation k lye ziada sensitive bnata hai. Aur ye trend ki direction ko determine karny main helpful hota hai.

SMA = (a1+a2+…..an)/n

A= Data points
N= Number of time periods

EMA= vt*(s/1+d)+EMAy

EMAT= EMA today.
Vt= Value today.
S= smoothing.
D= number of days.

Steps for calculating EMA:

1. Specific period k lye SMA ka hisab lgaye.

2. Formula ko use krty hue EMA ko weighting deny k lye multiples ka hisab lgaye.

Purpose of Moving Averages:

1. Moving average ka purpose short term fluctuations ko khatam karna hai.

2. Moving average traders ko market k overall trend ko identify karny main madad krti hai.

3. Ye aik customizable ishara hai jo trader ko trading purpose k lye time frame choose karny main madad krta hai.

4. Moving averages market k under support aur resistance levels ko determine karny k lye bhi use hoti hai.

Interpret moving average:

1. Moving average trend ki direction ko determine karta hai.

2. Support aur resistance level ko determine karta hai.

3. Ye multiple averages ko use kar k market k long term aur short term trend ko assess karta hai.

Re: Importance of "Moving average" in technical analysis:

Moving average (MA).

Dear friends, Forex ma bht sy trader aesy hain jo marker me trade moving average ki help sy open karty hain kyun Kay is ki working strategy intihai simple aur useful Hy. mostly traders Jo professional hen wo is baat sy waqif hen kay market apni history ko zarur dohrati Hy. So trader market ki current position ko pehly note karty hain or phe eski history ko dakh kar average price determine kar lety hain.



Current Price Average (CFA)

Agr dakhy jay to market ki current price average price sy kam ho to wo buy ki trade open karna behtr hota hy aur is sy aksar traders ko profit hasil ho jata hai. Agr market ki current price average price sy above show ho rahi hu to trader ko sell ki trade open kar leni chahe or es tarha wo market ay profit hasil karny ma kamyab ho sakta hai. Jo trader moving average ki base par trade karty hain wo hamesa kamyab ho jaty hain. But trader ko moving average technique par small lot sy he trade karni chahe. Big lots bhot dangerous hoti hain.



Working Strategy of Moving Average

Moving average ya EMA forex market main trade kerny ky liay aik acha indicator hai jis ko ham apni trading main apply kerty hain tou hamain market ki kisi bhi direction main movement ka idea ho jata hai ky same direction main market ki movement ki average Kia hai aur agar same average per market ki movement ki direction upward ho tou hamain market main uptrend ko expect kerty huey market main buy ki trade enter kerni chahiay aur agar moving average ki direction downward ho tou hamain market main sell ki trade enter kerni chahiay ky jab tak same direction change nehi ho jati hamain same direction main trade open ker ky continue ker lety hain aur hamain open ki jany wali trade main acha profit bhi hasil hota hai.



Benifits of Using Moving Average

Moving Average mostly aik specific time main market ki upward ya downward movement ko read ker rehi hoti hai ky same time period main market ka overall trend downward hai ya upward tou market ka same trend hamain exponential moving average line sy bhi show ho raha hota hai ky market main movement hamesha both directions main continue hoti hai aur agar same movement per ham kisi hui aur direction main trade open ker lety hain tou hamari open trade main loss ky bahot zyada chances hoty hain ky market kisi bhi waqat hamari open trade ky against movement kerna shoru ker deti hai tou hamain loss hona shoru ho jata hai agar Ham same trade open kerny sy pehly exponential moving average ki direction ko read ker lety hain tou hamain market main trade open kerny main preshani nehi hoti aur ham jo bhi trade open kerty hain market beshak kuch time period ky liay reverse order main movement continue ker sakti hai.



Advice For Traders

Moving Average ky mutabiq market zarur movement continue kerti hai jis sy hamain open trade main acha profit bhi hasil ho jata hai agar ham is ki history sy proper briefed ho to.