MA Technical Analysis and MA Trading Signals
A trading indicator that calculates the average value of market prices ( or any specified info sequence ) over a pre-determined period of time.
The only significant difference between the various types of MAs is weight assigned to most recent data. Simple MAs Moving Averages apply equal weight to the prices. Exponential & weighted averages apply and assign more weight to the recent prices.
Explanation
The most popular strategy of interpreting the MA indicator is to compare & analyze the relationship of the movement between the MA of the price with the price itself. A buy signal is derived/generated when price rises above its MA and a sell trade signal is generated when price drops and falls below its Moving Average.
MA Indicator
Buy & Sell Trade Signals generated by MA crossing above/below trading price action.
MA Cross over Strategy
Also popular are various types of MA cross over trading methods. Such systems often include two or more moving averages crossing above/below each other & perhaps even utilizing other technical indicators as additional entry & exit confirmation trading signals. The combinations of conditions for these types of systems are almost limitless.
Moving Average Cross-over System
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