Forex Moving Average (MA) in Color MQ4 Trading Indicator – A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations.
It is a trend-following or lagging, indicator because it is based on past prices.
A simple moving average is formed by computing the average price of a security over a specific number of periods. Most moving averages are based on closing prices.
A 5-day simple moving average is the five-day sum of closing prices divided by five. As its name implies, a moving average is an average that moves.
Old data is dropped as new data comes available.T his causes the average to move along the time scale.