Moving Average CFDs Analysis & Moving Average Signals
An indicator that calculates the average value of prices (or any specified data sequence) over a pre determined 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 cfd prices. Exponential & weighted averages apply more weight to recent prices.
Explanation
The most popular technique of interpreting the Moving Average indicator is to compare the relationship between the Moving Average of the price with the price itself. A buy signal is generated when the price rises above its Moving Average & a sell signal is generated when the price falls below its MA.
MA Indicator
Buy and Sell Signals generated by Moving Average crossing above or below the price action.
Moving Average Cross-over CFD 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 indicators as additional entry & exit confirmation signals. The combinations of conditions for these types of systems are almost limitless.
Moving Average Cross-over System
What is a Trading Plan? - Writing a Trading Plan Example
Alternatives: EA Automated Robots or Copier Trading Signals
