Moving averages are one of the most popular and easy to use tools available to the technical analyst. Moving average Forex indicator is the average price for a given time interval in relation to other prices during the similar time periods. For instance the closing prices over a 5-day period would have a moving average of the total of the five closing prices divided by five.

A moving average is an average of a shifting body of data, as seen from its name. For example, a 10-day moving average is got by adding closing prices for the last 10 periods being measured and dividing by 10. The term "moving" is used as only the last 10 days are used in the measurement. That's why the data body is averaged shifted forward with every next trading day.

The moving average line will be placed directly in the price shifting chart. The moving average is measured with a definite predefined period. The sensibility of the moving average is weaker if the period is longer. The probability of false signals is higher if the period is shorter.

Here are few warning signs for forex trading to save yourself from any fraud dealing:

1. Stay Away From Opportunities That Sound Too Good to Be True.

2. Avoid Any Company that Predicts or Guarantees Large Profits.

3. Stay Away From Companies That Promise Little or No Financial Risk.

4. Don't Trade on Margin Unless You Understand What It Means.

5. Question Firms That Claim To Trade in the "Interbank Market"

6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise. Be especially alert to the dangers of trading on-line.

7. Currency Scams Often Target Members of Ethnic Minorities.

8. Be Sure You Get the Company's Performance Track Record.

9. Don't Deal With Anyone Who Won't Give You Their Background.