The moving average of foreign exchange is the line formed by the average price of exchange rate in a certain period. According to different time, the foreign exchange moving average can be divided into one-hour line, four-hour line, daily line and weekly line. Different moving averages have certain differences in the judgment of exchange rate.
How to set the foreign exchange moving average? In fact, according to the different periods of investors' positions, there is also a big gap in the setting of moving averages.
If investors practice intraday trading, then the EMA can be set to five minutes, 10 minutes and 30 minutes as the period of the EMA for analysis.
If the investor trades in the medium and long term, the 5-day, 13 and the moving average can be used as parameters.
Under normal circumstances, the foreign exchange moving average is mainly used for daily transactions. The shorter the period of the moving average, the more sensitive it is to the exchange rate. The longer the time, the stronger the lag of the moving average.
The foreign exchange moving average usually combines three lines. In the use of a single moving average, the 13 moving average plays a very significant role in judging the support level and resistance level, and then the 75-day moving average.