On the daily chart, we point out the moving average along the daily chart. When the closing price is higher than the moving average, a buy signal is generated. When the closing price is lower than the moving average, there is a sell signal. In order to further verify the above signals, some analysts also want to see the change of the moving average itself in the cross direction.
We can also use two moving averages to generate trend signals, with a longer period for identifying trends and a shorter period for selecting opportunities. It is the interaction between the two moving averages and the price that produces the trend signal together.