News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
More View more
Real Time News
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here:
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: #DailyFXGuides
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here:
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge:
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
Getting Started with Moving Averages

Getting Started with Moving Averages

Walker England, Forex Trading Instructor

Talking Points:

  • MVAs show the average price of a currency for a specific number of periods
  • As price moves so will the indicator, giving clues about the current market
  • Traders can filter a trading decision based on the position of price relative to a MVA

Simple Moving Averages (MVAs) consist of some of the most versatile and widely used indicators in the market. Typically MVAs are used for filtering the trend, support and resistance levels, as well as market entries. Today we will continue our look at indicators by reviewing one of these components to get you comfortable using MVAs in your trading strategy. Let’s get started!

MVAs and the Trend

First you may be asking, “What is a moving average?” Moving averages are simple technical tools that are designed to measure the average price presented on a graph for a designated number of periods. For example the 200 period MVA is shown below. This means that the closing price has been taken for the last 200 periods, added them together then finally divided that sum out again by 200. Once this number has been established, the average is printed on the graph as a frame of reference.

Below we can see a USDCAD daily graph with price trending downward. You should notice as price trends downward, the MVA will begin moving lower as well. With price moving down faster than the 200 period MVA this is a strong signal that the market is declining.Likewise as price moves upward, the average will slowly move towards higher highs as well. Knowing this, we can now work the MVA into our trading.

Getting Started with Moving Averages

(Image from the DailyFX Trading with MVAs course material)

Trading with a MVA Filter

Once a 200 period MVA has been added to your chart, you can easily decipher whether you should be considering a buy or sell position. The best trading environment for new buying positions would be in an uptrend as price moves towards higher highs, while the currency pair stays above the 200 MVA. The example below shows opportunities to buy the EURUSD as it rallies above the average. Since the trend is up, at no time should traders consider a sell based position!

This bias abruptly changes when prices move below the designated 200 period MVA. Since the price on this USDCAD daily chart is below the average traders should at no point consider new positions buying the pair. As price moves towards lower lows and stays below the average, only new sell positions should be considered. Now that you have filtered for the trend, you can focus your attention to timing new entries with the market!

Getting Started with Moving Averages

(Image from the DailyFX Trading with MVAs course material)

Trading with MVAs

Filtering for the trend is just one of three key ways you can utilize the Moving Average in your trading! To learn about the remaining two opportunities, sign up for the DailyFX Moving Average Trading Course. Registration is free, and the course includes video as well as checkpoint questions to test your knowledge. Get started using the link below!

Register me for the “Trading with Moving Averages, Strategy Course”

(Valid name, email, phone number, and country are needed)

---Written by Walker England, Trading Instructor

To contact Walker, Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list,CLICK HEREand enter in your email information

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.