Moving Average Forex Trading Technical Analysis & Moving Average Signals
An technical indicator which calculates the average value of prices (or any specified 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 prices. Exponential and weighted averages apply more weight to recent prices.
Explanation
The most popular method of interpreting the MA is to compare the relationship between the MA of the price with the price itself. A buy signal is generated when the price rises above its MA and a sell signal is generated when the price falls below its MA.
MA Technical Indicator
Buy & Sell Signals generated by MA crossing above or below the price action.
Moving Average Crossover Trading Strategy
Also popular are various types of moving average cross over systems. Such systems often include two or more moving averages crossing above/below each other & perhaps even utilizing other technical indicators as additional entry and exit confirmation trading signals. The combinations of conditions for these types of systems are almost limitless.
Moving Average Crossover System
