Overview: The moving average (MA) is a lagging indicator, which limits its value in predicting future price movement. However, when the behavior of two MAs with different timeframes is studied, the tendency for convergence and crossover adds value and creates confirmation value when compared to momentum trends. Crossovers between MAs and from MA to price have significance; and MA movement can further be used to track resistance and support.
The moving average (MA) is a commonly seen attribute of stock charts. However, is this truly a price indicator? Or is it more valuable when used along with momentum oscillators? The distinction is worth studying. Most chartists consider MA as a price indicator. However, when used ...
Get Understanding Momentum in Investment Technical Analysis now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
