Moving Average Crossover
Classic TAThe classic trend-change detector, with four confirmations behind it.
how moving average crossover works
What it does
Two simple moving averages, a fast 20-period and a slow 50-period, smooth price into two lines. A raw crossover fires constantly in chop, so this version only acts when the cross is backed by confluence: the longer 200-EMA trend agrees, the slow average is actually sloping the right way, and the candle itself has momentum. All four have to line up.
How it works
- 1Compute the 20 (fast) and 50 (slow) SMAs plus the 200-EMA macro trend filter.
- 2Confirm 1: a fresh 20/50 cross this candle. Confirm 2: price on the trend side of the 200-EMA.
- 3Confirm 3: the 50-SMA is sloping the entry's way. Confirm 4: the close pushes past the prior close.
- 4The signal only fires when at least four of the five checks agree; otherwise it waits.