Long Term Stock Indices Trading Strategy System Tutorial

Long-Term Index Trading Strategy

Long term Indices strategy will use long period like the 100 & 200 MAs which act as long term support & resistance levels. Since many Traders use these 100 & 200 moving averages, price will often react to these support & resistance levels.

100 and 200 MAs - Strategy Examples

In Stock Indices, traders can use both fundamental analysis & technical analysis to help figure out whether a Indices price trend is a good buy or sell.

In Indices technical analysis technique Indices traders looking to gauge supply & demand for a Indices price chart use the 200 day moving average to examine data in different ways.

Traders are most familiar with the basic Indices technical analysis of the 200 day MA is used to plot the long term support/resistance level. If Index market price is above 200 day MA then the trend is bullish, & if it is below then it's bearish.

One of the ways to measure supply and demand on Stock Indices trading is to calculate the average closing price over the last 200 sessions. This accounts for each day going back in time and shows how this 200 day average has moved.

The reason why the average 200 day MA(Moving Average) in particular is so popular on Stock Indices technical analysis is because historically has been used with profitable results for trading in the exchange market. A popular timing Indices strategy is used to buy when the Indices market is above its moving average of 200 days & sell when it crosses below it.

With this moving average Indices indicator, Indices traders can benefit from being notified when a Indices price rises above, or falls below its 200 day Moving Average(MA) and then use fundamental analysis to help determine if the Indices signal is an opportunity to go long or short.

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