MA Analysis & Moving Average Signals
An indicator that calculates the average value of prices (or any specified data sequence) over a pre-determined time period.
Only significant difference between the various types of MAs is weight assigned to the recent most price data. Simple MAs apply equal weight to the prices. Exponential and weighted averages assign more weight to more recent prices.
Interpretation
Most popular technique of analyzing the Moving Average is to compare & analyze the relationship between the MA Moving Average of the price with the price itself. A buy signal is generated/derived when price rises above its MA and a sell signal is generated/derived when the price drops below its MA Moving Average.
Moving Average Indicator
Buy & Sell generated by Moving Average crossing above or below the price action.
Moving Average Crossover Method
Also popular are various types of MA crossover trading methods. Such systems often include two or more MAs crossing above/below each other and perhaps even using other indicators as additional entry & exit confirmation signals. Combinations of conditions for these types of systems is almost limitless.
Moving Average Crossover Method
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