Moving Average Oil Technical Analysis & Moving Average Crude Trading Signals
An technical indicator that calculates the average value of crude oil prices (or any specified data sequence) over a pre determined 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 crude oil prices. Exponential & weighted averages apply more weight to recent crude oil prices.
Explanation
The most popular method of interpreting the MA is to compare the relationship between the MA of the crude oil price with the crude oil price itself. A buy oil signal is generated when the crude oil price rises above its MA and a sell oil signal is generated when the crude oil price drops below its Moving Average.
MA Technical Indicator
Buy & Sell Oil Trading Signals generated by MA crossing above or below the crude oil price action.
Moving Average Crossover 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 technical indicators as additional entry & exit confirmation signals. The combinations of conditions for these types of trading systems are almost limitless.
Moving Average Crossover System
