Moving Average Support and Resistance Levels

Moving Averages can be used as points of support and resistance on energies charts.

When energies price reaches the moving average, the Moving Average level can act as a point of support or resistance for the energies price.

Buy Trading Signal

If energies price is on an upward energies trend and starts to retrace, then most traders might wait to buy at a better energies price when the price hits a support level. Traders will sometimes use the Moving Average to determine the support level.

A buy signal is generated when price hits the Moving Average, turns and starts moving in the upward trend direction. The energies signal is confirmed when price closes above the MA. Because many traders use the moving averages to generate energies signals, energies price will normally react to these levels.

A stop-loss should be set just below the Moving Average energies Energies Trading Indicator. Ideally it should be set a few pips below the previous low.

Buy Energies Signal - How to Trade Energies Trading with Moving Average Strategy

Sell Trading Signal

If the energies price is on a downward energies trend and starts to retrace, then most traders might wait to sell at a better energies price when the price hits a resistance level. Traders will sometimes use the Moving Average to determine the resistance level.

A sell signal is generated when price hits the Moving Average, turns and starts moving in the downward energies trend direction. The energies signal is confirmed when price closes below the MA. Because many traders use the moving averages to generate energies signals, energies price will normally react to these levels.

A stoploss should be set just above the energies moving average indicator. Ideally it should be set a few pips above the previous high.

Sell Energies Signal - How to Trade Energies Trading with Moving Average Strategy

Resistance Level turns Support Level

In Energies Trading - When a resistance level is broken it turns into support and vice versa.

This happens when the fundamentals of a energies trend change and consequently the direction of a energies. The direction change is reflected by the moving average energies technical indicator, the direction is confirmed when resistance zone turns into support area or vice versa (when support area turns into resistance level)

Resistance Level turns Support Level - Moving Average Energies Strategy Example