High/Low Moving Average

Click here to read about Moving Averages.

How does the high/low Moving Average differ from the Simple Moving Average? Again like the Adaptive Moving Average, when the price is highly eratic there will not be a temptation to buy/sell, as the price will be contained within the high/low boundaries. While if the price is going in one direction, this can be seen clearly by the location of the price line, in comparison to the high/low moving average.

This chart study will plot the moving averages of both the high and low for the selected period.

Parameters: Period.

For additional help on what the different parameters mean, that isn't included on this page, click here.

High/Low Moving Average

Here is an example of an High/Low Moving Average chart study (on a London Stock Exchange graph)

Reading the study:

Trade in a similar way to the SMA.

In an up-trend: Buy when the price closes above the 'high' moving average, sell when the price closes below the 'low' moving average.

High/Low Moving Average Crossings

Here is an example of the High/Low Moving Average crossing the price line (of the London Stock Exchange), and what it may indicate