Moving Average Technical Analysis & Moving Average Trading Signals
An indicator that calculates the average value of prices ( or any specified data sequence ) over a predetermined period of time.
The only significant difference between the various types of MAs is weight assigned to most recent data. Simple moving averages apply equal weight to the trading prices. Exponential & weighted averages apply more weight to recent prices.
Explanation
The most popular strategy of interpreting the MA indicator is to compare the relationship between the MA of the trading price with the trading price itself. A buy signal is generated when the trading price rises above its Moving Average & a sell signal is generated when the price drops below its Moving Average.
MA Indicator
Buy & Sell Trading Signals generated by Moving Average crossing above or below trading price action.
Moving Average Crossover Strategy
Also popular are various types of moving average cross over systems. Such systems often include two or more moving averages crossing above/below each other & perhaps even utilizing other technical indicators as additional entry and exit confirmation signals. The combinations of conditions for these types of systems are almost limitless.
Moving Average Crossover System
What's a Stock Index Trading Plan? - Stock Indices Trading Plan Example
Alternatives: Automated EA Trading or Copy and Paste Signals
