Moving Average Crossovers

Tue Aug 27, 2019 12:31 am
avatar  Forex

A crossover is one of the main strategies for the moving average. It describes the meeting point ("Cross") of two standard indicators. For a standard moving average, a crossover occurs above or below the moving average line, indicating a possible trend change. However, the crossover strategy uses two different price movement indicators: the fast EMA and the slow EMA. When both lines intersect, a trading opportunity has been identified.

A forex trader would go into a long position if the fast EMA crossed the slow EMA from bottom to top. If the fast EMA crosses the slow EMA instead from top to bottom, it would open a short position.


 Report post
Already a member?
Register now!
Create an account?
Sign up now!