Moving Average Cross-over Signals
Moving average technical indicator can be used to determine the momentum of a market move - momentum of a trend. In analysis there is method of using the moving average indicator just to do this. This method of xauusd is known as the MA cross over xauusd signal. This MA cross over xauusd signal method involves using two moving averages - one moving average that has a higher trading price period and another moving average that has a lower price period. For example a moving average indicator crossover system can have the 5 day moving average and the 7 day moving average.
These two moving averages will then be used to determine the direction of the market & also the momentum of the trend.
Upward Trend - when both moving averages are moving upwards the trend is upward - upward trend direction
Downward Trend - when both moving averages are moving down the market trend is downwards - downward trend direction
The two moving averages will also be used to determine the momentum of the current market trend direction. As long as the two moving averages keep moving in the same direction then the current trend direction is likely to continue.
If the two moving averages crossover each other - then it means that the trend might change & a trader should get ready to open or to close a trade depending on the direction of the market that the trader is trading.
A trader can learn more about how to use this MA cross over xauusd signal and get an example of how this Moving Average crossover signal xauusd system is used to generate trade signals in the strategy tutorial: MA Cross-over Signal XAUUSD Method
Beginner traders can also add this strategy method in their system and combine this MA cross over method with other indicators to come up with a system. A trader will then write the rules of their system and use these written rules to know when to open a buy trade or a sell xauusd trade & when to close the trade. To learn how to come up with a system - traders should go to the strategies section of this web site and read the systems guides.
Trend Indicators Moving Average Indicator Technical Analysis - Trend Indicator MT4 MA Indicator
