Moving average cross trading strategy

A moving average is a technical analysis indicator that helps smooth out price action by filtering out the “noise” from random price fluctuations.
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Stop-loss for Long positions should be set to the Low of the last candle before the cross occurred. For Short positions — to the High of the last candle before the cross. Take-profit should depend on the stop-loss and should be not less that stop-loss.

Types of moving average crossovers

I recommend setting TP to 1. Use this strategy at your own risk. It's not recommended to use this strategy on the real account without testing it on demo first. Do you have any suggestions or questions regarding this strategy?


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I started off rather simply using basic line graphs, then looking at different moving averages and moving into incorporating a backtesting library to help show buy and sell signals using different trading strategies. Using this strategy a buy signal occurs when the shorter term MA crosses above the longer term. A sell signal occurs when the opposite happens: the shorter term MA crosses below the longer term MA.

In my examples below I use the day MA one month or four weeks as the short term and day MA ten weeks as the long term. This continues over time until you see a sell signal was just flashed on October 1, In the stock swung back and forth several times generating multiple buy and sell signals, most of which generated losses for our theoretical portfolio. Please log in again.

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Moving Average Trading Strategies

Hi Rayner. Thank you for this very simple but very effective strategy.

I will go long surely. Happy trading, Richard. Thanks Rayner, very good information to always be in favor of the dominant trend. Rayner, you great. Thanks a million times.


  1. Simple moving average.
  2. questions to ask when given stock options;
  3. How to calculate the SMA.

    4. I seriously need such assistance to help me recover from my losses in trading forex. Thank for sharing that with us Rayner. It is very interesting. Could this also work on the lower timeframes like 1H or 15min? Hey Sharon The concept can be applied the same. Whether you want to use it as a trend filter or ride massive trends.

    Thanks Sir Rayner.. Another learnings from you. Hey Rayner, Please write one article on stock selection or how to find valid trading setups easily through thousands of stocks. Thanks, Jamir.

    Trading moving averages - part 1 (using EMA 12 / 50 crossovers) - altFINS

    Hi Rayner Great content as always. What are your thoughts? But the concept could work. Am very grateful for this information thanks very much sir. It means you shift your stops higher as the market moves in your favor. Both timeframes are fine.

    Are the moving average settings fixed?

    But the 4-hour would be more relevant to entries on the 1-hour and 15mins timeframe. Do some backtesting Cheers…. Hi Murthy, You are most welcome! At times , trailing Stop loss gets hit and we are out of trend catching Rayner. What to do then?