Moving Average Technical Analysis & MA Signals
A trading indicator that calculates the average value of prices (or any specified data sequence) over a pre-determined time period.
The only significant difference between the various types of MAs is the weight allocated to the most recent data. Simple MAs apply equal weight to the prices. Exponential & weighted averages assign more weight to the recent prices.
Explanation
The most popular method of interpreting the Moving Average is to compare the relationship between the MA of the price with the price itself. A buy signal gets generated/derived when the price rises above its Moving Average and a sell trade signal gets derived and generated when price falls and drops below its Moving Average.
Moving Average Indicator
Buy and Sell Signals derived & generated by Moving Average crossing above/below the price action.
Moving Average Cross-over Forex Strategy
Also popular are various types of MA crossover trading systems. Such systems often include 2 or more MAs Moving Averages crossing above/below each other & perhaps even utilizing other technical indicators as additional entry and exit confirmation trading signals. The combinations of conditions for these types of systems is almost limitless.
Moving Average Cross-over System
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