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How Moving Average works in trading

How Moving Average works in trading

What is MA?

moving average is a line displays the price trend over a certain period of time. Depending on the time period, MA can be divided into short-term medium-term and long-term.

How MA works in trading?

When the moving average gradually flattens from the decline and rises slightly, while the price breaks through from the short term MA to the long term , that is a BUY signal.

When the moving average gradually flattens to decline slightly, while the price falls from the short term average to break the long term , that is a SELL signal.

The price runs above the moving average, it is a BUY opportunity when the price does not fall below the moving average and then rises again.

The price runs below the moving average, it is a SELL opportunity when the price does not break above the moving average and then falls again.

The price runs above the moving average and rising sharply for a period of time in a row, getting further and further away from the moving average, which is likely to reversal. This is the time for SELL.

The price runs below the moving average and falling sharply for a period of time in a row, getting further and further away from the moving average. It's very likely to reversal. This is the time for buy.

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