Moving Averages

According to Forex Realm, the concept of using a moving average (MA) to trade financial markets was popularized by Richard Donchian after World War II. While Donchian used a single moving average to determine the best time to buy or sell, modern day traders often use combinations of two or three moving averages on their screen, and watch for areas of confluence or divergence between the indicator lines to determine the best time to buy or sell. Though many Forex traders make moving average study an integral part of their daily trading strategy, keep in mind it is what is called a lagging indicator, which simply means it trails real-time market action. It is best used in conjunction with other indicators to confirm a market trend or reversal.

Elliott Wave Theory

References

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