- This topic has 228 replies, 226 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
Moving Average: The moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time, like 21 days, or any time period the trader chooses.
Guidelines:
- If the current stock price is above a moving average the trend is bullish.
- If the current stock price is below a moving average the trend is bearish.
- The moving average works like a magnet. It uses the concept of equilibrium.
Note:
- The moving average exceptionally works for trending.
- The moving average does not works for sideways movement or non-trending.
Moving average is a technical indicator which is the average of closing prices for a definitive period. If the current price is above moving average,it represents bullish.If the current price is below moving average,it represents bearish.
It is the technical indicators, which works as Magnet(equilibrium) .It is calculated with short term periods.It happens in trending period, when the current stock is above moving average it is bullish.
Moving Average is the indicator that can be applied for analysis with trending zone. This indicator basically smoothen the trend with the average price value previous 21 days. The trend will be positive as long as the current price is above the average and negative when it goes below the average.This indicator does not help during the non trending period.
- You must be logged in to reply to this topic.
