MA Support and Resistance Zones

MAs can be used as points of support and resistance on charts.

When price reaches and gets to the moving average, the Moving Average level can act as a point of support resistance for the price.

Buy Trading Signal

If the price is on an upward trend & starts to retrace, then most traders might wait to buy at a better trading price when the price hits a support level. Traders will sometimes use the Moving Average to identify the support zone.

A buy signal is derived and generated when price hits the Moving Average, turns and starts heading in the upward trend direction. The signal is confirmed when the price closes above the Moving Average. Because many traders use the MAs Moving Averages to generate signals, trading price will generally react to these zones.

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

How Do I Trade Indices with Moving Average Strategy?

How to Trade Indices with MA Strategy

Sell Signal

If the price is on a downwards trend and starts to retrace, then most traders might wait to sell at a better trading price when the price hits a resistance level. Traders will sometimes use the MA to identify the resistance area.

A sell signal is derived/generated when price hits the Moving Average, turns & starts heading in the downward trend direction. The signal is confirmed when price closes below the Moving Average. Because many traders use the MAs Moving Averages to generate trade signals, price will generally react to these zones.

A stop loss order should be set just above the Moving Average MA trading indicator. Ideally it should be placed a couple of pips above the previous high.

How to Trade Stock Index with MA Strategy

Sell Stock Index Trade Signal - How to Trade Stock Indices with MA Strategy

Resistance Zone turns Support Area

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

This happens when the fundamentals of a trend change and consequently the direction of indices. Direction change is reflected by the moving average technical indicator, the direction is confirmed when the resistance level turns in to support zone or vice versa (when support zone turns into resistance area)

Resistance Level turns Support Level

Resistance Level turns Support Level - Moving Average Indices Strategy Example

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