Moving Average Crossover (Moving Average Crossover)
The strategy is based on the crossover of two moving averages of different periods. Moving averages are lines in the form of curves on the chart. They show the average value for the selected period. For example, to calculate a 10-day moving average, you need to take the sum of prices for 10 days and divide it by 10.
The essence of the moving average crossover strategy is as follows. When a short moving average (for example, let it be a 50-day moving average) crosses a long moving average (for example, a 200-day moving average) from bottom to top, it can be considered as a buy signal. The method is used to determine the change of trend direction. Moving averages are available for 10, 20, 50, 100 and 200 days.