Technical Analysis of Moving Average Stock Technical Indicator
Stock Trend Identification
The stocks moving average indicator can be used as an indicator for generating stocks signals. A buy or sell signal is generated when price either moves above or below the moving average, respectively.
If the Moving Average is heading upward in diagonal manner then the general stocks market stocks trend is upwards.
If the on the other hand the Moving Average is heading downwards in diagonal manner then the general stocks market stocks trend is downwards.
Upward Stocks Trend/Bullish Trend
If the Moving Average is moving up, then the trend is upwards and the signal generated is a buy/bullish stocks trade signal.
As long as the stocks price is above the moving average then the stocks trend will remain as an upward trend. The moving average will act as a "support level" and stocks price action of the stock chart candlesticks should not close below the Moving Average.
Buy Stocks Signal
When the stocks price moves above the Moving Average and closes above the moving average, a buy stocks trade signal is generated.
Stocks Traders, who want to confirm the stocks trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an upward stocks trend direction. It is always best to wait for the confirmation stocks signal so as to reduce chances of a stocks whipsaw.
Upward Stocks Trend - How to Day Trade Stocks: A Detailed Guide to Day Trading Strategies
Downward Stocks Trend/Bearish Market
If the Moving Average is moving down, then the trend is downwards and the signal generated is a sell/short stocks trade signal.
As long as the stocks price is below the Moving Average then the stocks trend will remain as a downward bearish Stocks trend. The Moving Average will act as a "resistance level" and stocks price action of candlesticks should not close above the Moving Average.
Sell Stock Signal
When the stocks price moves below the Moving Average and closes below the moving average, a sell stocks trade signal is generated.
Traders who want to confirm the stocks signal should wait until the Moving Average line turns and starts to move in a downward direction. This will reduce the chance of trading a stocks whipsaw.
Downward Stocks Trend - How to Day Trade Stocks: A Detailed Guide to Day Trading Strategies
Stocks Trading Range Market signals
Range Stock Market signals can also be identified using the Moving Average Stock Technical Indicator.
Moving Average Crossover Method Stocks Strategy
The moving average crossover method is also another stock trading signal generation strategy that is more favored by traders compared to the above stocks signal generation strategy method. Moving average crossover stocks strategy is also the simplest form of a stocks system widely used by online stock traders. This Moving Average crossover method is combined with other technical indicators to form more complex stocks systems and stocks strategies.
