Moving Average Stocks Technical Analysis and Moving Average Stock Signals

An indicator that calculates the average value of stocks 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 stocks prices. Exponential and weighted averages apply more weight to recent stocks prices.

Interpretation

The most popular method of interpreting 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 Indicator

Buy and Sell Stocks 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 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. The combinations of conditions for these types of systems are almost limitless.

Moving Average Crossover System