Moving Averages are one of the oldest and most popular technical analysis tools. A moving average is the average price of a security at a given time. When calculating a moving average, we have to specify the time span to calculate the average price (e.g., 50 days).
Practical Use:
1>Moving Average Line Works As Support Resistance
2>Moving Average Line penetration below Price Line is a buy signal while MA Line moving above Price Line is sell signal. (Short time span MA line gives lots of false signal, be careful)
3>Short Period MA Line (e.g. 20 Days MA) penetration below Long Period MA Line (e.g. 50 Days MA) is a buy signal, while Short Period MA Line moving above Long Period MA Line is sell signal.
Technical Analysis Basics
Technical Analysis Charts Type
Technical Analysis Trendline
Technical Analysis Trend Reversal
Technical Analysis Support Resistance
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Technical Analysis Moving Average
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