Generate large profits with the help of moving Averages

If you try to create good profits from trading consistently then it will be easier for you, if you can follow the current market trend, a simple tool that you can use moving averages. Moving average (MA) is a lagging indicator or commonly referred to as a trend after the marker that has three types: simple moving average (SMA), exponential moving average (EMA) and weighted moving average (WMA).

MA is a statistical formula that calculates the average price movements over a given period. Usually, the used value is the closing price that occurred in some session in a market. But there are some technicians who perform certain modifications, using the open, a higher price, lowest price or medium price as a variable in the calculation.

Calculation formula used to generate the value of this indicator is very simple. 5-Day SMA price SMA is created from the sum of the most recent closing price 5 days and then divided by 5. Suppose the sum of the last 5 days closing value is 100, then the current 20-day SMA 5. You're lucky, because now you don't need to perform manual calculation to determine the MA of a certain length of time, in a market. Everything is available for your chart. All you have to do now is studying and use high discipline to help achieve good profits consistently.

As a trend indicator obviously moving averages work best when market trending. We'll buy or sell signal that has a very good chance of profit. When prices are above MA then is a buy signal and such condition indicates that the trend will likely move upwards, however when price moves below MA such status indicates begins the tendency to fall and should take place.

There are several other techniques widely used by dealers in their efforts to optimize the power of moving averages. Some technicians use different periods of time moving averages, some prefer to use shorter periods of time as 5, 10 and 20 while some are happy to use 50, 100 and 200.

Another widely used technique implements two or more moving averages with different periods of time, say three SMA with season 4, 9 and 18. If the day 4 and 9 SMA cross over the 18-day SMA underneath this condition indicates the trend of the market will soon be daily and as the shortest MA hovers over a longer period (MA), the next trend likely to continue.

All these techniques and changes depend on which a trader interests and style of trading. As it is to negotiate and then you should try to find a good technique that you feel comfortable. Explore moving averages and good profit from it.

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Peso averages at 5.4% vs US dollar in H1 '10

MANILA, Sept. 24 – Investors' risk aversion and renewed appetite towards emerging markets helped boost the Philippine currency as it appreciated by 5.4 percent against the US dollar in the first half of 2010.

Bangko Sentral ng Pilipinas (BSP) Department of Economics Statistics Director Rosabel Guerrero, in a briefing, said the local unit averaged at 45.77 to a dollar from January to June this year, better than the 47.8 to a dollar it registered same period last year.

“Remittances from Filipinos abroad also lifted the peso,” she said.

Inflows from Overseas Filipinos expanded by 7.1 percent year-on-year last July after it amounted to US$ 10.7 billion.

Monetary officials eye an eight percent growth for remittances this year from last year's US$ 17.3 billion.

This growth forecast already materialized last January when inflows rose by 8.5 percent when inflows totaled to nearly US$ 1.4 billion. The eight percent growth level was again registered in June and July although the highest cumulative year-on-year expansion stood at 8.5 percent last January.

However, the all-time high inflows for remittances was achieved last June when it totaled to US$ 1.62 billion.

Monetary officials attributed this robust growth to the continued strong demand for overseas Filipino workers as global recovery continue despite questions about the path of the US economy as well as the ongoing sovereign debt crisis in some parts of Europe.

They continue to see strong flows to continue in the coming months but is also open that inflows could have reached its peak because of base effect.

Last Wednesday, the peso closed to its highest in more than two years at 43.88 to a dollar, which analysts traced to risk aversion and the decision of the US Federal Reserve to maintain its policy rates to near-zero level.

Wednesday’s closing is near the 43.75 to a dollar level it registered in June 2008.

Analysts see the local unit ending at 43 level this year and Wednesday’s closing is the second time this year that it reached this level.

The peso first touched the 43 to a dollar level this year last September 13 but retreated and closed to 44 level after the trading. (PNA)

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