MA Analysis & Moving Average Signals
An technical indicator that calculates the average value of prices (or any specified data sequence) over a pre-determined period of time.
Only significant difference between the various types of MAs is weight assigned to the recent most price data. Simple Moving Averages apply equal weight to the prices. Exponential & weighted averages apply more weight to recent prices.
Interpretation
The most popular technique of analyzing the Moving Average is to compare the relationship between the MA of the price with the price itself. A buy signal is generated when price rises above its MA and a sell signal is generated when the price drops below its MA Moving Average.
Moving Average Indicator
Buy and Sell generated by Moving Average crossing above or below the price action.
Moving Average Cross Over Strategy
Also popular are various types of MA crossover 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 and exit confirmation signals. Combinations of conditions for these types of systems are almost limitless.
Moving Average Cross Over System
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