Moving Average Stock Indices Technical Analysis and Moving Average Stock Indices Signals

An indicator that calculates the average value of stock indices prices (or any specified data series) over a predetermined period of time.

The only significant difference between the various types of MAs is the weight assigned to the most recent data. Simple moving averages apply equal weight to the stock indices prices. Exponential and weighted averages apply more weight to recent stock indices prices.

Interpretation

The most popular method of interpreting the MA is to compare the relationship between the MA of the stock index price with the stock index price itself. A buy stock indices signal is generated when the stock index price rises above its MA and a sell stock indices signal is generated when the stock index price falls below its Moving Average.

MA Indicator

Buy and Sell Stock Indices Signals generated by MA crossing above or below the stock index price action.

Moving Average Crossover Stock Indices Strategy

Also popular are various types of moving average crossover systems. Such systems often include two or more moving averages 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 Crossover System