# Moving Average Support and Resistance Levels

Moving Averages can be used as points of support and resistance on stock indices charts.

When stock indices price reaches the moving average, the Moving Average level can act as a point of support or resistance for the stock indices price.

## Buy Indices Trading Signal

If stock indices price is on an upward indices trend and starts to retrace, then most indices traders might wait to buy at a better stock indices price when the stock indices price hits a support level. Indices Traders will sometimes use the Moving Average to determine the support level.

A buy stock indices signal is generated when stock indices price hits the Moving Average, turns and starts moving in the upward indices trend direction. The stock indices signal is confirmed when stock indices price closes above the MA. Because many indices traders use the moving averages to generate stock indices trading signals, stock indices price will normally react to these levels.

A stop loss should be set just below the Moving Average indices trading Indicator. Ideally it should be set a few pips below the previous low.

**How to Trade Indices with Moving Average Strategy**

## Sell Indices Trading Signal

If the stock indices price is on a downward indices trend and starts to retrace, then most indices traders might wait to sell at a better stock indices price when the stock indices price hits a resistance level. Indices Traders will sometimes use the Moving Average to determine the resistance level.

A sell stock indices signal is generated when stock indices price hits the Moving Average, turns and starts moving in the downward indices trend direction. The stock indices signal is confirmed when stock indices price closes below the MA. Because many indices traders use the moving averages to generate stock indices trading signals, stock indices price will normally react to these levels.

A stop loss should be set just above the indices trading moving average indicator. Ideally it should be set a few pips above the previous high.

**Sell Indices Trading Signal - How to Trade Indices with Moving Average Strategy**

## Resistance Level turns Support Level

In Indices Trading - When a resistance level is broken it turns into support and vice versa.

This happens when the fundamentals of a indices trend change and consequently the direction of indices. The direction change is reflected by the moving average stock indices indicator, the direction is confirmed when the resistance turns into support or vice versa (when support turns into resistance)

**Resistance Level turns Support Level - Moving Average Indices Trading Strategy Example**