Indicators
Moving average crossover
A fast moving average crossing a slow one: fast above slow is bullish (a “golden cross”), fast below slow is bearish (a “death cross”).
Why it works
Crossovers objectively show a change in momentum and keep you on the right side of a developing trend.
How to use it
Use the crossover as a filter: only look for buys while the fast EMA is above the slow one, and enter on pullbacks.
The typical mistake
Trading every crossover in a range: you get chopped up by repeated false signals.
FAQ
What is MA crossover in trading?
A fast moving average crossing a slow one: fast above slow is bullish (a “golden cross”), fast below slow is bearish (a “death cross”).
How do you trade MA crossover?
Use the crossover as a filter: only look for buys while the fast EMA is above the slow one, and enter on pullbacks.