Moving Average Oil Analysis & Moving Average Trading Signals
An technical indicator which calculates the average value of oil trading prices (or any specified price data series) over a predetermined period of time.
The only significant difference between the various types of MAs is the weight assigned to the most recent data. Simple moving averages apply equal weight to the oil prices. Exponential & weighted averages apply more weight to recent oil prices.
Explanation
The most popular method of analyzing the Moving Average is to compare the relationship between the Moving Average of the crude oil price with the crude oil price itself. A buy oil signal is generated when the crude oil price rises above its Moving Average and a sell oil signal is generated when the crude oil price falls below its Moving Average.
MA Technical Indicator
Buy & Sell Oil Trading Signals generated by Moving Average crossing above or below the crude oil price action.
Moving Average Crossover Oil Trading Strategies
Also popular are various types of moving average cross over systems. Such systems often include two or more moving averages crossing above/below each other & perhaps even utilizing other technical indicators as additional entry and exit confirmation signals. Combinations of conditions for these types of systems are almost limitless.
Moving Average Crossover System
