MOving Avarage Indicators #1 - Basic Introduction

Recently been listen to some masters talking about MOving Average Indicator.. I decided do a simple survey on it!


What is Moving Avarage (MA)?
The Moving Average is an indicator that shows the average value of the price of a currency over a set of value.


How many types? 
There are four (The well-known) type of Moving Average indicators:
Simple
Exponential
Smoothed
Linear Weighted




Simple Moving Average SMA
The Simple (Arithmetical) Moving Average is the simplest version yet the widely used one.
It calculates the average of the price by adding the prices of the specified period together then divides it by the number of the prices. For example the Moving Average of the last 50 days closing price is the addition of these prices divided by 50

Exponential Moving Average EMA

The exponential Moving Average indicator smoothes the Moving Average by adding the Moving Average  the current closing price to the previous value and giving the last prices more weighted value. The Exponential Moving Average reacts faster to recent price changes than SMA.

Smoothed Moving Average SMMA

The Smoothed Moving Average indicator smoothes the Moving Average by giving the recent prices an equal weighted to the historic ones. It recommend to use the SMMA with long period to get better result.

Linear Weighted Moving Average - LWMA:

The Linear Weighted Moving Average indicator smoothes the Moving Average by giving the latest data more weighted value than more early data. That’s limit the effect of the price fluctuations of the recent price.