MA cross
MA cross is a trading indicator that is used to filter out noise from the price chart.
MA cross can also be used by a trader to know the direction in which the price is moving.
MA cross indicator is a trend indicator.
MA cross is based on the crossover. Based on the crossover, MA cross has two moving average, the shorter term moving average and the longer term moving average. The shorter-term moving average is normally red in color and it represents the price while the longer term moving average is normally blue in color and it represents the moving average.
Therefore, since MA cross is based on the crossover, it, therefore, follows that when the short term moving average crosses above the long-term moving average that will be an indication of an upward market movement thus the trader should be trading upwards. On the other hand, when the short term moving average crosses below the long-term moving average that will be an indication of a downward market thus the trader should be trading downwards. This is indicated as from the candlesticks chart below;
From the candlesticks chart above, there are 4 points, point A, B, C and D. Point A, and B represent the crossovers points while point C is the long-term moving average and is blue in color. Point D represents the short term Moving average and is red in color.
At point A, the short-term MA has crossed below the long-term MA thus an indication of a downward market movement .This will signal the trader to be trading in a downwards market direction from point A. On the other hand, at point B, the short-term MA has crossed above the long-term MA thus an indication of an upward market movement. This will signal the trader to be trading in an upwards market direction from point B.
MA cross can also be used by a trader to know the direction in which the price is moving.
MA cross indicator is a trend indicator.
MA cross is based on the crossover. Based on the crossover, MA cross has two moving average, the shorter term moving average and the longer term moving average. The shorter-term moving average is normally red in color and it represents the price while the longer term moving average is normally blue in color and it represents the moving average.
Therefore, since MA cross is based on the crossover, it, therefore, follows that when the short term moving average crosses above the long-term moving average that will be an indication of an upward market movement thus the trader should be trading upwards. On the other hand, when the short term moving average crosses below the long-term moving average that will be an indication of a downward market thus the trader should be trading downwards. This is indicated as from the candlesticks chart below;
From the candlesticks chart above, there are 4 points, point A, B, C and D. Point A, and B represent the crossovers points while point C is the long-term moving average and is blue in color. Point D represents the short term Moving average and is red in color.
At point A, the short-term MA has crossed below the long-term MA thus an indication of a downward market movement .This will signal the trader to be trading in a downwards market direction from point A. On the other hand, at point B, the short-term MA has crossed above the long-term MA thus an indication of an upward market movement. This will signal the trader to be trading in an upwards market direction from point B.
Comments
Post a Comment