Technical Analysis of Moving Average Technical Indicator
Indices Trend Identification
The indices trading moving average technical indicator can be used as an technical indicator for generating trading signals. A buy or sell stock indices 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 stock indices market trend is upward.
If the on the other hand the Moving Average is heading downwards in diagonal manner then the general stock indices market trend is downwards.
Upward Indices Trend/Bullish Trend
If the Moving Average is moving up, then the trend is upward & the signal generated is a buy/bullish indices signal.
As long as the price is above the moving average then the indices trend will remain as an upwards trend. The moving average will act as a 'support level' and 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 stock indices signal is generated.
Indices Traders, who want to confirm the indices trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an upward indices trend direction. It's always best to wait for confirmation stock indices signal so as to reduce chances of a indices trading whipsaw.
How to Day Trade Indices: A Detailed Guide to Day Trade Strategies
Downwards Indices Trend/Bearish Market
If the Moving Average is moving down, then the trend is downwards and the signal generated is a sell/short indices signal.
As long as the price is below the Moving Average then the indices trend will remain as a downward bearish Indices trend. The Moving Average will act as a "resistance level" and 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 stock indices signal is generated.
Traders who want to confirm the stock indices 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 trading whipsaw.
Downwards Indices Trend - How to Day Trade Indices: A Detailed Guide to Day Trade Strategies
Indices Range Market signals
Range Indices Trading Market signals can also be identified using Moving Average Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another stock indices signal generation strategy that is more favored by traders compared to the above stock indices signal generation strategy method. Moving average crossover indices trading strategy is also the simplest form of a indices trading system widely used by online traders. This Moving Average crossover method is combined with other technical indicators to form more complex indices systems & trading strategies.
