hello, i’m new here and i’m learning forex via our site. Yeah, i’m learning Simple Moving Average Simple Moving Average (SMA): Calculating & Plotting Charts using SMAs . My english is not good in this case. Can somebody please explain it to me ?
What are the differents between them ? 5SMA, 30SMA and 62SMA ? 5, 30 and 62 means period simple moving averages ?
Please for read, please feel free to help me.
Thank you.
Sma 5 it uses the last 5 bars to form its calculation , sma 30 it uses the last 30 bars to form its calculation
Generally speaking, most charting packages/platforms use the close of a candle when calculating Simple Moving Averages. A 5 SMA uses the last 5 closing prices of a given period, a 62 SMA uses the last 62 closing prices of a given period. The larger the number of periods used in a SMA, the more the Moving Average lags in comparison to price action. Many traders try to find a combination of two moving averages and wait for cross overs to occur before making entries.
Are there 2 moving averages most traders use? This is probably dependent on the time frame trading on? Just curious. This newb is still learning how to use the various tools out there!
there is no rule, each trader use the setting he is comfortable with the most common is 21,55,100,200 , but i really think that it doesnot matter