Moving Average Crossovers

The moving average crossover is a technique used by traders of financial markets to assist in making trading decisions. Typically, two moving averages are plotted on the chart, one of them a faster moving average, the other one a slower moving average. A faster moving average intersecting above the slower moving average is known as a bullish crossover. Additionally, a faster moving average intersecting below the slower moving average is known as a bearish crossover. Using Moving Average CrossoversThe moving average crossover is a popular method used in technical analysis, for two main reasons, it’s simplicity and its effectiveness. Traditionally, a single moving average is used by traders to help gauge the overall trend. For example, in forex trading, many traders will use the 200 SMA (simple moving average) which is often a good support and resistance indicator. However, by using two moving averages, it gives traders the ability to pick out specific turning points in the market. The usefulness of the moving average crossover is that it can be used on any timeframe and in any market. The faster moving average is a shorter period MA, meaning it only considers the market over a shorter period of time. Consequently, it’s much more prone to changing scope and direction.However, the slower moving averages are a longer period MA, meaning it considers the market over a longer time period.This results in a MA which is less reactive to rapid fluctuations in price, giving it a visually smoother look on the charts. There are a number of different ways to trade the moving average crossover, but without a doubt the most popular way is the classic two MA crossover.This helps traders, depending on the period settings of both MAs, either get in near the beginning of a trend, or enter as the trend gets established.
The moving average crossover is a technique used by traders of financial markets to assist in making trading decisions. Typically, two moving averages are plotted on the chart, one of them a faster moving average, the other one a slower moving average. A faster moving average intersecting above the slower moving average is known as a bullish crossover. Additionally, a faster moving average intersecting below the slower moving average is known as a bearish crossover. Using Moving Average CrossoversThe moving average crossover is a popular method used in technical analysis, for two main reasons, it’s simplicity and its effectiveness. Traditionally, a single moving average is used by traders to help gauge the overall trend. For example, in forex trading, many traders will use the 200 SMA (simple moving average) which is often a good support and resistance indicator. However, by using two moving averages, it gives traders the ability to pick out specific turning points in the market. The usefulness of the moving average crossover is that it can be used on any timeframe and in any market. The faster moving average is a shorter period MA, meaning it only considers the market over a shorter period of time. Consequently, it’s much more prone to changing scope and direction.However, the slower moving averages are a longer period MA, meaning it considers the market over a longer time period.This results in a MA which is less reactive to rapid fluctuations in price, giving it a visually smoother look on the charts. There are a number of different ways to trade the moving average crossover, but without a doubt the most popular way is the classic two MA crossover.This helps traders, depending on the period settings of both MAs, either get in near the beginning of a trend, or enter as the trend gets established.

The moving average crossover is a technique used by traders of financial markets to assist in making trading decisions.

Typically, two moving averages are plotted on the chart, one of them a faster moving average, the other one a slower moving average.

A faster moving average intersecting above the slower moving average is known as a bullish crossover.

Additionally, a faster moving average intersecting below the slower moving average is known as a bearish crossover.

Using Moving Average Crossovers

The moving average crossover is a popular method used in technical analysis, for two main reasons, it’s simplicity and its effectiveness.

Traditionally, a single moving average is used by traders to help gauge the overall trend.

For example, in forex trading, many traders will use the 200 SMA (simple moving average) which is often a good support and resistance indicator.

However, by using two moving averages, it gives traders the ability to pick out specific turning points in the market.

The usefulness of the moving average crossover is that it can be used on any timeframe and in any market.

The faster moving average is a shorter period MA, meaning it only considers the market over a shorter period of time. Consequently, it’s much more prone to changing scope and direction.

However, the slower moving averages are a longer period MA, meaning it considers the market over a longer time period.

This results in a MA which is less reactive to rapid fluctuations in price, giving it a visually smoother look on the charts.

There are a number of different ways to trade the moving average crossover, but without a doubt the most popular way is the classic two MA crossover.

This helps traders, depending on the period settings of both MAs, either get in near the beginning of a trend, or enter as the trend gets established.

Technical Analysis

Bitcoin technical analysis & trade idea (updated! See why we are aborting)

Bitcoin technical analysis

Bitcoin technical analysis & trade idea (updated! See why we are aborting)

  • See the previous technical analysis of BTCUSD and the trade idea to short it. Since then, relative technical strength from ETHUSD and an anticipation that this may lead to a rally in crypto, led to aborting the trade idea with a small loss. Traders can follow the trade idea and update to see an example of being agile in trading and cutting your losses short, in light of new technical evidence, even if it relates to a parallel asset that should affect your trade.
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Another crypto trade lost? This simple rule will probably save your ass next time.

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  • If you have been trading crypto, you have been there.. You are hit by a reversal and give money back to the market. What can you do instead of blaming Mister Market? This simple tip will probably save you next time.
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  • What does a trader do if only 1 out of 3 buy orders got filled and price rallied? Start by raising the original stop to protect profit.
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