Moving Average Analysis & MA Trading Signals

An indicator which calculates the average value of prices (or any given data series) over a pre determined period of time.

The only significant difference between various types of MAs is weight assigned to most recent data. Simple Moving Averages apply equal weight to the prices. Exponential & weighted averages apply and assign more weight to the most recent prices.

Interpretation

The most popular technique of interpreting the MA indicator is to compare the relationship of movement between the MA Moving Average of the price with the price itself. A buy trading signal gets derived & generated when price rises above its Moving Average & a sell signal gets derived and generated when price drops below its Moving Average.

Moving Average Indicator Analysis - Moving Average Gold Indicator Analysis

MA Indicator

Buy & Sell Trading Signals generated by MA Moving Average crossing above or below the price action.

Moving Average Cross over Strategy

Also popular are various types of Moving Average cross over systems. Such systems often include 2 or more MAs crossing above/below each other and perhaps even utilizing and using other indicators as additional entry and exit confirmation trading signals. The combinations of conditions for these types of trading systems is almost limitless.

Moving Average Indicator Technical Analysis - Moving Average Cross over Strategy

Moving Average Cross over System

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Moving Average Analysis & MA Trading Signals

Moving Average Cross over Strategy