IC Markets
3:09
2:39
2:10
2:18
3:43
8:42
Moving Averages Explained
3:05 · 8 chapters · Forex lessons, part 55
What you'll learn
One line that shows the trend: how moving averages work, SMA vs EMA, and why they always lag.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- How a moving average is calculated, with a simple 5-bar example
- Key point 2
- The difference between SMA, EMA and WMA
- Key point 3
- Three jobs: trend direction, dynamic support and crossovers
- Key point 4
- Common crossover pairs, plus the Golden Cross and Death Cross
- Key point 5
- Why moving averages lag and fail in sideways markets
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.