MA Crossover Strategy

The Moving Average cross over method uses two moving averages to generate signals. The first Moving Average is a shorter price period Moving Average and the second average is a longer price period Moving Average.

MA Crossover Strategy - Moving Average Crossover Stocks

This crossover moving average method is referred to as the cross-over technique because signals are generated when two averages cross each other.

Buy Signal

A buy stocks is generated when the shorter Moving Average crosses above the longer Moving Average.

A Buy Generated when the Shorter Moving Average Crosses above the Longer MA

Sell Signal

A sell stocks is generated when the shorter Moving Average crosses below the longer Moving Average.

A Sell Generated when the Shorter Moving Average Crosses below the Longer MA

The above Moving average crossover system is the most simplest of all systems that traders use to trade stocks.