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Technical Analysis of Moving Average Stock Trading Indicator


Stock Trend Identification

The stock trading moving average indicator can be used as an indicator for generating stock trading signals. A buy or sell Stock trading signal is generated when stock price either moves above or below the moving average, respectively.

 

If the MA is heading upward in diagonal manner then the general stock trading market stock trading trend is upwards.

 

If the on the other hand the MA is heading downwards in diagonal manner then the general stock trading market stock trading trend is downwards.

 

Upward Stock Trend/Bullish Trend

If the MA is moving up, then the stock trading trend is upwards and the signal generated is a buy/bullish stock trading signal.

 

As long as the stock trading price is above the moving average then the stock trading trend will remain as an upward trend. The moving average will act as a “support level” and stock price action of the stock trading chart candlesticks should not close below the MA.

 

Buy Stock Trading Signal

When the stock trading price moves above the MA and closes above the moving average, a buy stock trading signal is generated.

 

Stock Traders, who want to confirm the stock trading trade signal before implementing it, should wait until the MA line turns and starts to move in an upward stock trading trend direction. It is always best to wait for the confirmation stock trading signal so as to reduce chances of a stock trading whipsaw.

Upward Stock Trend - How to Day Trade Stock: A Detailed Guide to Day Trading Strategies

Upward Stock Trend - How to Day Trade Stock: A Detailed Guide to Day Trading Strategies


Downward Stock Trend/Bearish Market

If the MA is moving down, then the stock trading trend is downwards and the signal generated is a sell/short stock trading signal.

 

As long as the stock trading price is below the MA then the stock trading trend will remain as a downward bearish Stock trend. The MA will act as a “resistance level” and stock price action of candlesticks should not close above the MA.

 

 

Sell Stock Trading Signal

When the stock trading price moves below the MA and closes below the moving average, a sell stock trading signal is generated.

 

Stock traders who want to confirm the stock trading signal should wait until the MA line turns and starts to move in a downward direction. This will reduce the chance of trading a stock trading whipsaw.

 

Downward Stock Trend - How to Day Trade Stock: A Detailed Guide to Day Trading Strategies

Downward Stock Trend - How to Day Trade Stock: A Detailed Guide to Day Trading Strategies

 

Stock Range Market signals

Range Stock Trading Market signals can also be identified using the Moving Average Stock Trading Indicator.

 

Moving Average Crossover Method Stock Trading Strategy

The moving average crossover method is also another Stock trading signal generation strategy that is more favored by stock traders compared to the above stock trading signal generation strategy method. Moving average crossover stock trading strategy is also the simplest form of a stock trading system widely used by online stock traders. This MA crossover method is combined with other technical indicators to form more complex stock trading systems and stock trading strategies.

 

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