Moving Averages

Moving averages are yet another very common indicator that every forex trader must know how to use because all the major market movers apply this indicators to their trading strategies. So lets dive into this one head first.

What do Moving Averages do?

To put it simply, they give us a much smoother/easier visual representation of what the price action has been doing. So instead of a chart that’s littered with candlesticks that are doing all sorts seemingly random moves up and down, we get a solid line which depicts the AVERAGE price action over the time period in question.

Check out this example:

So how do Moving Averages work?

To calculate a moving average you do the basic math involved with any basic

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January 1st, 2010 | Category: Forex Training, Lessons, Moving Averages | 8 comments

The Alligator

Warning! Make sure you understand what moving averages are and how they work before reading this lesson. Also, the following is not a traditional Alligator trading strategy explanation. Instead it is a completely different way of calculating an Alligator indicator handed down from a previous forex mentor of mine which I will now reveal for free. For an explanation of what is considered a traditional Alligator calculation and strategy you should go to Google and search for Bill Williams’ Alligator and you will find tons of good info there. This version is different from Mr. Williams’ version in that it uses both types of moving averages (simple and exponential) and it is more accurate (in my opinion) over

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December 30th, 2009 | Category: Forex Training, Moving Averages | 26 comments