Moving Average Stocks Technical Analysis & Moving Average Stock Signals

An technical indicator that calculates the average value of stocks prices (or any specified price data series) over a predetermined period of time.

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

Explanation

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

MA Technical Indicator

Buy and Sell Stocks Trading Signals generated by Moving Average crossing above or below the stocks price action.

Moving Average Crossover Stocks Strategy

Also popular are various types of moving average cross over systems. Such systems often include 2 or more moving averages crossing above/below each other & perhaps even utilizing other technical indicators as additional entry & exit confirmation signals. Combinations of conditions for these types of trading systems are almost limitless.

Moving Average Crossover System