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Moving Average Strategy

February 3rd, 2011 by forexcityguy

This simple moving average strategy is proposed here at Forex Forums, it illustrates the ability for a moving average indicator to both indicate the beginning of a trend as well as areas where reentry into an existing trend can occur to increase your position size or just get in for the initial time.

Get Your Moving Averages Straight!
A simple moving average is formed by computing the average price of a security over a specific number of periods
An Exponential moving average is similar and appears similar, but by definition it reduces the lag by applying more weight to recent prices.

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