Moving Average Crossover Stocks Signals

Moving average technical indicator can be used to determine the momentum of a stocks market move - momentum of a stock trend. In stocks technical analysis there is method of using the moving average indicator just to do this. This method of stocks is known as the moving average crossover stocks signal. This moving average crossover stocks signal method involves using two moving averages - one moving average that has a higher stocks price period and another moving average that has a lower stocks price period. For example a moving average indicator crossover stocks 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 trend.

Upward Stocks Trend - when both moving averages are moving up the stocks trend is upward - upward stocks trend direction

Downward Stocks Trend - when both moving averages are moving down the stocks trend is downward - downwards stocks trend direction

The two moving averages will also be used to determine the momentum of the current stocks market stocks 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 stocks trend may change and a trader should get ready to open or to close a stocks trade depending on the direction of the market that the trader is trading.

A trader can learn more about how to use this moving average crossover stocks signal and get an example of how this Moving Average crossover stocks signal stocks system is used to generate trade signals in the stocks strategy tutorial: Moving Average Crossover Signal Stocks Method

Beginner stock traders can also add this stocks strategy method in their stocks system and combine this moving average crossover method with other technical technical indicators to create a stocks system. A trader will then write the rules of their stocks system and use these written stocks rules to know when to open a buy stocks trade or a sell stocks trade & when to close the trade. To learn how to come up with a stock system - traders should go to the stocks strategies section of this website and read the stocks systems tutorials.

Stocks Trend Indicators Moving Average Stock Indicator Technical Analysis - Stocks Trend Indicator MT4 Moving Average Indicator