Analysis of MA Technical Indicator

Indices Trend Identification

The indices trading moving average technical indicator can be used as an indicator for generating trading signals. A buy or sell signal is generated when price either moves above or below the moving average, respectively.

If the Moving Average is moving upwards in diagonal manner then the general market trend is upward.

If the on the other hand the Moving Average is heading downwards in diagonal manner then the general market trend is downward.

Up-ward Indices Trend/Bullish Trend

If the Moving Average is heading up, then the trend is upward and the signal generated is a buy/bullish signal.

As long as the price is above the moving average then the trend will remain as an upwards trend. The moving average will act as a 'support level' & price action of the chart candlesticks should not close below the MA.

Buy Trading Signal

When the price moves above the Moving Average and closes above the moving average, a buy signal is generated.

Indices Traders, who want to confirm the trade signal before implementing it, should wait until the Moving Average line turns & starts to move in an upward trend direction. It's always best to wait for confirmation signal so as to reduce chances of a indices whipsaw.

How to Day Trade Indices: A Detailed Guide to Day Trade Strategies Methods

Downwards Trend/Bearish Market

If the Moving Average is heading down, then the trend is downwards and the signal generated is a sell/short signal.

As long as the price is below the MA then the trend will remain as a downward bearish Indices trend. The Moving Average will act as a "resistance level" & price action of candlesticks should not close above the MA.

Sell Trading Signal

When the price moves below the Moving Average and closes below the moving average, a sell signal is generated.

Traders who want to confirm the trading signal should wait until the Moving Average line turns and starts to move in a downwards direction. This will reduce the chance of trading a indices whipsaw.

Down-wards Trend - How to Day Trade Indices: A Detailed Guide to Day Trade Strategies Methods

Indices Range Market signals

Range Trading Market signals can also be identified using Moving Average Technical Indicator.

MA Crossover Strategy Strategy

The MA cross-over method is also another signal generation strategy that is more favored by traders compared to the above signal generation strategy method. Moving average crossover trading strategy is also the simplest form of a trading system widely used by online stock traders. This Moving Average crossover method is combined with other indicators to form more complex indices systems & indices strategies.