Stock Indices Trend Indicators Moving Average Stock Index Indicator Analysis
Moving average indicator can be used to determine the momentum of a stock indices market move - momentum of a stock index trend. In stock indices technical analysis there is method of using the moving average indicator just to do this. This method of stock indices is known as the MA cross-over stock indices signal. This MA cross-over stock indices signal method involves using two moving averages - one moving average that has a higher stock index price period and another moving average that has a lower stock index price period. For example a moving average indicator crossover stock indices 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 and also the momentum of the stock index trend.
Upward Stock Indices Trend - when both moving averages are moving upwards the stock indices trend is upwards - upward stock indices trend direction
Downward Stock Indices Trend - when both moving averages are moving down the stock indices trend is downwards - downwards stock indices trend direction
The two moving averages will also be used to determine the momentum of the current stock indices market stock indices 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 stock indices trend may change and a trader should get ready to open or to close a stock indices 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 stock indices signal and get an example of how this Moving Average crossover stock indices signal stock indices system is used to generate trade signals in the stock indices strategy tutorial: MA Cross Over Signal Stock Indices Method
Beginner traders can also add this stock indices strategy method in their stock indices system and combine this MA cross-over method with other technical indicators to create a stock indices system. A trader will then write the rules of their stock indices system and use these written stock indices rules to know when to open a buy stock indices trade or a sell stock indices trade & when to close the trade. To learn how to come up with a stock index system - traders should go to the stock indices strategies section of this website and read the stock indices systems guides.
Stock Indices Trend Indicators Moving Average Stock Index Indicator Analysis - Stock Indices Trend Indicator MetaTrader 4 Moving Average Indicator