A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods.
It is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods
Using multiple timeframe currency analysis will enable you to dramatically increase the odds in your favor. The 200 SMA forex day trading strategy is made up of 3 different timeframe's, the 4 hour, 1 hour and 15 min chart. In this particular strategy, both the 4 hour chart and 1 hour chart are used to track the overall trend in the market. The 15 min chart is primarily used to determine the exact entry, exit and the stop loss. Once the 15 min chart trades in agreement with the 4 hour and 1 hour forex trends then you can enter a forex trade.