Moving Average is one of the most popular trend-following indicators. The simple moving average (SMA) is calculated as the average price for the given number of the most recent periods. The exponential moving average (EMA) gives more weight to the more recent prices. Bullish / Bearish signals are generated when the price line crosses above / below the moving average. When two moving averages with different lenght are being used, the bullish / bearish signals are generated when the shorter moving average crosses above / below the longer one.
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