Moving Average describes the average rate of the last predetermined number of periods.
It serves as an indicator of trend reversals.
A Moving Average can be used in many ways. We believe in using two of the Moving Average's lines:
It serves as an indicator of trend reversals.
A Moving Average can be used in many ways. We believe in using two of the Moving Average's lines:
Short Term Average Line - A line that reflects an average of the last 12 periods.
Long Term Average Line - A line that reflects an average of the last 26 periods.
Long Term Average Line - A line that reflects an average of the last 26 periods.
How to predict a Downward Trend - When the Average Short Term Line crosses the Average Long Term Line from above, or when the Average Short Term Line moves away from the Average Long Term Line on a downward direction - this is a sign of a Downward Trend.
How to predict an Upward Trend - When the Average Short Term Line crosses the Average Long Term Line from below or when the Average Short Term Line moves away from the Average Long Term Line on an upward direction - this is a sign of an Upward Trend.
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