**Moving Average Cross over Concept**

Moving average cross over is a very popular concept! Traders have used this phenomena since a long time.

A moving average cross over is a condition on the chart, where, either the price crosses over moving average or moving averages themselves cross over each other. Whenever these crossovers take place, traders find an opportunity to BUY or SELL in the market.

We will discuss moving average cross over concept in detail in the coming sections, but before that, Let’s understand what are moving averages ?

**WHAT ARE MOVING AVERAGES ?**

**Moving averages**are popularly used in the Forex market by the technical analysis as the technical indicators. In modern days, they have become a major factor in the creation of

**forex trading strategies**because they are very easy to use during the technical analysis.

**moving average crossovers**have been used for a very long time by many Forex traders. They have been tested, measured, and applied for a very long time. Results have made them the basis for the

**modern forex trading strategies**derived by Technical analysis.

**“wall between the trends”**

**Popular types of Moving Averages**

**NOTE: You do not need to know, how to calculate moving average. It is simply not required, because your broker or trading platform does it for you automatically. Let’s Trade Smart, not Hard!**🙂

**The simple moving average (SMA)**

**Point to be Noted: Simple moving average does not give importance to recent changes in the price.**

**The Exponential Moving Average (EMA)**

**Moving Average Crossover Concept & Strategies**

**Moving average Price Crossover****Two MA (moving average) crossover**

**Moving Average Price crossover Strategy**

In this strategy, a trade setup is expected whenever the price crosses above or below a moving average. (moving average can be either SMA or EMA).

**A BUY signal is generated, if and only if,**

Price Crosses and closes above the moving average, retests the moving average with enough buying pressure.

**A SELL signal is generated, if and only if,**

Price crosses below the moving average. It retests the moving average with enough bearish momentum.

**TWO MA Crossover Strategy**

In this strategy, a trade is taken whenever the two moving average crosses over each other. Here there are 2 types of two MA cross overs. One is GOLDEN CROSS, the second one is DEATH CROSS.

There are different ways and different moving averages considered for this strategy. But we will state the most popular one.

**GOLDEN CROSS**

Golden cross occurs, when a smaller moving average crosses above the larger moving average. For example,

A BUY signal is generated, if,

100 moving average crosses above 200 moving average.

**DEATH CROSS**

Death cross occurs, when the smaller moving average crosses below the larger moving average. For example,

It generates a SELL signal, if,

100 moving average crosses below 200 moving average.

**Limitations of Moving average Crossover Strategy**

**Conclusion**

**Looking for Free Forex Signals? Join Our Telegram Channel**

**ALSO CHECKOUT : Trading signals – are they worth it ?**