Moving average crossover strategiesBeginner
Golden cross, EMA crosses and why filters matter.
The idea
When a faster moving average crosses a slower one, the short-term trend has turned. The golden cross (50 over 200, daily) is the famous long-term version; 9/21 EMA crosses are a common short-term one.
The rules
- Buy when the fast average crosses above the slow one.
- Exit or reverse on the opposite cross.
- Short-term versions usually add a trend filter (only long above the 200 EMA) and a fixed stop and target.
Variations traders use
Different lengths, exponential vs simple averages, and requiring price to also close above both averages.
What testing shows
Long-term crosses produce very few trades, so results depend on a handful of big trends. Fast crosses produce many trades and are often eaten by costs and whipsaws in ranges.
What it looks like on a real chart
Picked automatically from the backtest on real data: the latest winner and the latest loser. The numbered circles are the steps of the rules, in order. Losers are part of every strategy.
How WickCheck tests it
Buy when the 9 EMA crosses above the 21 EMA and price is above the 200 EMA. Sell when the 9 EMA crosses below the 21 EMA and price is below the 200 EMA. Stop at 1.5x ATR. Target 2R.
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Full results on 5 markets: Moving average crossover strategies.
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Popular strategies explained
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.