Moving Average Technical Analysis & MA Signals
An indicator that calculates the average value of prices (or any specified data sequence) over a pre determined period of time.
The only significant difference between the various types of MAs is the weight allocated to the most recent data. Simple MAs apply equal weight to the prices. Exponential & weighted averages apply more weight to recent prices.
Explanation
The most popular method of interpreting the MA is to compare the relationship between the MA of the price with the price itself. A buy signal gets generated when price rises above its MA and a sell signal gets generated when price falls below its Moving Average.
Moving Average Indicator
Buy and Sell Signals generated by MA crossing above or below the price action.
Moving Average Cross-over Forex Strategy
Also popular are various types of MA cross over systems. Such systems often include 2 or more MAs crossing above/below each other and perhaps even utilizing other indicators as additional entry and exit confirmation signals. The combinations of conditions for these types of systems are almost limitless.
Moving Average Cross-over System