MA Signals (Moving Averages)

Moving averages are indicators that help smooth out price action and identify trends by calculating the average price of an asset over a specified period.

MA Moving Averages

• How It Works:

  • The Simple Moving Average (SMA) calculates the average price over a defined number of periods, while the Exponential Moving Average (EMA) gives more weight to recent prices.

  • Moving averages can generate buy or sell signals when the price crosses the moving average line.

• Use Case:

  • To identify trend reversals and confirm the prevailing market direction.

  • Commonly used in conjunction with other indicators to filter false signals.