Moving Average Indices Technical Analysis & Moving Average Trading Signals
An technical indicator that calculates the average value of indices 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 indices trading prices. Exponential and weighted averages apply more weight to recent indices prices.
Explanation
The most popular technique of interpreting the Moving Average is to compare the relationship between the Moving Average of the stock indices trading price with the stock indices trading price itself. A buy stock indices signal is generated when the stock indices trading price rises above its Moving Average & a sell stock indices signal is generated when the stock indices price drops below its Moving Average.
MA Technical Indicator
Buy & Sell Indices Trading Signals generated by Moving Average crossing above or below stock indices 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 trading systems are almost limitless.
Moving Average Crossover System
