Moving Average Crossover Method
The cross over method uses two moving averages to generate trading signals. The first MA is a shorter period MA and the second average is a longer period MA.
This method is referred to as the crossover method because signals are generated when the two averages cross each other.
A buy is generated when the shorter MA crosses above the longer MA.
A sell is generated when the shorter MA crosses below the longer MA.
Buy and Sell signal
The above system is the most simplest of all systems that traders use to trade currencies.