Moving Average

Question 1

what does the moving average indicator do?

Answer 1

the moving average indicator calculates a trend line that shows the average price over a period of time

Question 2

what does it mean when a price is above its long term MA?

Answer 2

there’s a strong uptrend

Question 3

what does it mean when a price is below its long term MA?

Answer 3

there’s a strong downtrend

Question 4

when the moving average is acting as a support level…

Answer 4

there’s a buying opportunity

Question 5

when the moving average is acting as a resistance level…

Answer 5

there’s a short-selling opportunity