MA Technical Analysis & MA Trading Signals

An technical indicator which calculates the average value of prices ( or any specified price data series ) 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 moving averages apply equal weight to the prices. Exponential & weighted averages apply more weight to recent prices.

Interpretation

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

MA Technical Indicator

Buy and Sell Trade Signals generated by MA crossing above or below the trading price action.

MA Cross Over Trading Strategies

Also popular are various types of MA cross-over 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 trading signals. The combinations of conditions for these types of systems are almost limitless.

MA Cross Over System