The 5-day moving average is the mathematical average of the exchange rate of the currency against the last 5 days divided by 5. In addition to this simple average, there is a weighted average. Comparatively speaking, the weighted average is closer to the market and more sensitive to market changes. The simple moving average lags behind, but some false breakthroughs can be ruled out. Both have their advantages and disadvantages.
As for the specific moving average used in trading, we should explore, try and summarize a suitable moving average system in practice.