moving average crossover strategy for successful traders to employ now

moving average crossover strategy

The moving average crossover strategy is very simple to implement. Basically, you start trading when the lines cross and stop trading when they cross in the opposite direction This can be a very effective strategy and can be used for any time frame or currency pair

https://trybuying.com/moving-average-crossover-strategy/

so what exactly is a moving average crossover strategy?

a moving average crossover strategy consists of a set of 2 or three different coler lines creadet buy taking the devine movement created buy a set number of candels . a typical moving average set with 5 circles on the 5-minute chart will draw a line, giving the movement for the last 25 minutes. this helps take the chatter out and gives a better understanding of currancy movement

20-period moving average crossover stratery

commonly used buy day traders  the 20-period moving average stratergy is to wait for the price to pull back to the moving average line before entering a trade. This strategy alows you to take advantage of the curent trend 

how to set your moving averages crossover strategy

The 5, 10, and 20 exponential moving averages (EMAs) can be used in trading strategies to identify trends and potential entry and exit points:
  • 5-day EMA: withe vewer candels the line shows quicker changes in the currency price
  • 10-day EMA: This provides a slightly wider view and takes more of the smaller price movements out of the picture
  • 20-day EMA: This follows price action on a wider range, giving you a bigger picture 
     
Here are some strategies that use these EMAs:
  • 5/20 EMA crossover
    Plot the 5-day and 20-day EMAs on a chosen time frame, such as a daily or weekly chart. When the 5-day EMA crosses above the 20-day EMA, it indicates a potential buying opportunity.
  • Short trade
    Look for a currency pair trading above the 20-period EMA and a positive MACD. Wait for the price to cross below the 20-period EMA, then go short 10 pips below it.
  • Equity markets exit

    Apply the 10/20 EMA crossover method to a weekly chart. When the 10-week moving average crosses below the 20-week moving average, it could be a good time to exit the equity markets. 

     

EMAs can be added to charting and are easy to set up most trading platforms, like mt4 or MT5, include this indicator as standard