![]() While one moving average can smooth out the overall price action and give us a good indication of the overall trend, using multiple moving averages helps to gauge the strength of the trends and also find trading opportunities. The longer-period EMAs indicate the trend, while the shorter-period EMAs are used to indicate the momentum of the price. Most times, EMAs of different periods are used for this. What is a moving average crossover strategy?Ī moving average crossover is a technical analysis method that uses two or more moving averages of different periods to analyze the trend and momentum of a market. ![]() ![]() In this post, we’ll discuss a 3 moving average crossover strategy, but first, let’s find out what a moving average crossover is. They are trend-following indicators and depending on the type of average that is calculated, they are classified into simple moving averages (SMA), exponential moving averages (EMA), linear-weighted moving averages (LWMA), and smoothed moving averages (SMMA).Īny of these moving average types can be used to create a crossover strategy, but traders often use the EMAs they focus more on the recent price data. Moving averages are indicators that measure the n-period mean of a particular price point, mostly the close price. Last Updated on 11 September, 2023 by Samuelsson 3 moving average crossover strategy 1.4.3 Trading the trend continuation after a pullback
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