MA Indices Analysis and Moving Average Signals

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

The only significant difference between the various types of MAs is the weight given to the most recent data. Simple moving averages apply equal weight to the prices. Exponential & weighted averages apply more weight to recent prices.

Explanation

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

MA Technical Indicator

Buy & Sell Stock Indices Signals generated by MA crossing above or below the price action.

MA Cross Over Stock Indices Strategy

Also popular are various types of moving average crossover 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 signals. Combinations of conditions for these types of systems are almost limitless.

MA Cross Over System