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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.

MA Crossover Method

 

This method is referred to as the crossover method because signals are generated when the two averages cross each other.

 

Sell signal Buy signal

A buy is generated when the shorter MA crosses above the longer MA.

 

Sell signal

A sell is generated when the shorter MA crosses below the longer MA.

 

Moving Average Crossover Method Forex Signals

Buy and Sell signal

The above system is the most simplest of all systems that traders use to trade currencies.

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