Trade Stock Indices

Long-Term Trading Stock Indices Trading Strategy

Long term Stock Indices trading strategy will use long period such as the 100 and 200 MAs which act as long term support and resistance levels. Since many Stock Traders use these 100 and 200 Stock Indices moving averages, the price will often react to these support and resistance levels.

100 and 200 MAs - Indices Trading Strategy Examples

In Indices, traders can use both fundamental analysis and technical analysis to help determine whether a Stock Indices price trend is a good buy or sell.

In Stock Indices technical analysis technique Stock Indices traders looking to gauge supply and demand for a Stock Indices price chart use the 200 day moving average to examine data in different ways.

Stock Indices traders are most familiar with the basic Stock Indices technical analysis of the 200 day MA is used to plot the long term support or resistance level. If Stock Indices market price is above 200 day MA then the trend is bullish, and if it is below then it is bearish.

One of the ways to measure supply and demand in Stock Indices trading is to calculate the average closing price over the last 200 sessions. This accounts for each day going back in time and shows how this 200 day average has moved.

The reason why the average 200 day MA in particular is so popular in Stock Indices technical analysis is because historically has been used with profitable results for trading in the exchange market. A popular timing Stock Indices strategy is used to buy when the Stock Indices market is above its moving average of 200 days and sell when it goes below it.

With this moving average Stock Indices indicator, Stock Indices traders can benefit from being notified when a Stock Indices price rises above, or falls below its 200 day Moving Average and then use fundamental analysis to help determine if the Stock Indices trading signal is an opportunity to go long or short.