Moving Average Flashcards
1
Q
what does the moving average indicator do?
A
the moving average indicator calculates a trend line that shows the average price over a period of time
2
Q
what does it mean when a price is above its long term MA?
A
there’s a strong uptrend
3
Q
what does it mean when a price is below its long term MA?
A
there’s a strong downtrend
4
Q
when the moving average is acting as a support level…
A
there’s a buying opportunity
5
Q
when the moving average is acting as a resistance level…
A
there’s a short-selling opportunity
