Moving Average Crossover Systems

Moving averages are simple yet powerful.

Types



SMA - Simple Moving Average

• Equal weight to all periods
• Smoother, more lag

EMA - Exponential Moving Average

• More weight to recent prices
• Faster reaction

Key Moving Averages

• 20 EMA - Popular for pullbacks
• 50 SMA/EMA - Institutional level
• 200 SMA - The king of MAs

Crossover Strategies

Golden Cross

• 50 MA crosses ABOVE 200 MA
• Long-term bullish signal

Death Cross

• 50 MA crosses BELOW 200 MA
• Long-term bearish signal

Practical System

1. 50 EMA above 200 = only longs
2. Enter on pullback to 20 EMA
3. Stop below recent swing
4. Trail with 20 EMA

Pro Tips

• MA slope matters
• Flat MA = ranging
• Steep MA = strong trend