How to Use MA in Real Trading

Make Trends Stand Out-Moving Averages

MA, short for Moving Averages, averages a security’s closing prices over a specific period.

For example, a stock’s 5-day moving average is calculated by dividing the sum of the closing prices for the last 5 days by 5. It represents the average trading price for the stock over the past 5 days.

In real trading, we often use a single moving average to analyze the trend, which is called the Moving Average Crossover Strategy.

A "bullish crossover" occurs when the stock price crosses the moving average to the upside, which indicates the trend might shift upward;

A "bearish crossover" occurs when the stock price crosses the moving average to the downside, signaling a potential downtrend.

In real trading, we often use a single moving average to analyze the trend, which is called the Moving Average Crossover Strategy.

A "bullish crossover" occurs when the stock price crosses the moving average to the upside, which indicates the trend might shift upward;

A "bearish crossover" occurs when the stock price crosses the moving average to the downside, signaling a potential downtrend.

But remember, moving averages only reflect past trends and past performance is not indicative of future results.

Other technical analysis tools should also be considered to analyze trends and make decisions.

Tap Below for a quick experience of the Technical Indicators tool!