LIVE#Educational_Post
Double Moving Average Crossover
The double moving average crossover strategy involves using two moving averages of varying lengths. Traders generally employ a combination of a short-term and a long-term moving average, such as a 50-day MA and a 200-day MA. Typically, the moving averages are of the same type, such as two simple moving averages (SMAs), but you could also use different types, such as an SMA coupled with an exponential moving average (EMA).
In this trading strategy, traders look for a crossover between the moving averages. A bullish signal occurs when the shorter-term moving average crosses above a longer-term moving average (also known as a Golden Cross), indicating a potential buying opportunity. Conversely, a bearish signal occurs when the shorter-term moving average crosses below the longer-term moving average (also known as a Death Cross), signaling a potential selling opportunity.
