Technical Analysis of MA Moving Average Indicator

Trend Identification

The Indices moving average indicator can be used as an indicator for generating signals. A buy or sell Indices signal is generated when price either moves above or below the moving average, respectively.

If the MA is heading upwards in diagonal manner then the general Indices market trend is upward.

If the on the other hand the MA is moving downward in diagonal manner then the general Indices market trend is downward.

Upward Indices Trend/Bullish Trend

If the MA is moving up, then the Indices trend is upward & the signal generated is a buy/bullish signal.

As long as the Indices price is above the moving average then the Indices trend will remain as an upward trend. The moving average will act as a "support level" & price action of the Indices trade chart candlesticks should not close below the MA.

Buy Signal

When the Indices price moves above the MA & closes above the moving average, a buy Stock Indices signal is generated.

Traders, who want to confirm the Indices trade signal before implementing it, should wait until the MA line turns & starts to move in an upward Indices trend direction. It is always best to wait for the confirmation Indices signal so as to reduce chances of a whipsaw.

Upward Indices Trend - How Do You Day Trade Indices: A Detailed Guide to Day Trade Strategies

Downward Indices Trend/Bearish Market

If the MA is moving down, then the Indices trend is downward & the signal generated is a sell/short Stock Indices signal.

As long as the Indices price is below the MA then the Indices trend will remain as a downward bearish trend. The MA will act as a "resistance level" & price action of candlesticks should not close above the MA.

Sell Signal

When the Indices price moves below the MA & closes below the moving average, a sell Indices signal is generated.

traders who want to confirm the Indices signal should wait until the MA line turns & starts to move in a downward direction. This will reduce the chance of trading a whipsaw.

Downward Indices Trend - How Do You Day Trade Indices: A Detailed Guide to Day Trade Strategies

Indices Range Market signals

Range Indices Market signals can also be identified using the Moving Average Indicator.

Moving Average Crossover Method Indices Trade Strategy

The moving average crossover method is also another signal generation strategy that is more favored by traders compared to the above Indices signal generation strategy method. Moving average crossover strategy is also the simplest form of a Indices system widely used by online Indices traders. This MA crossover method is combined with other technical indicators to form more complex Stock Indices systems & strategies.