Single Moving Average Crossover Strategy, The
The Single Moving Average Crossover Strategy is a technical analysis trading strategy that involves using a single moving average to identify potential buy and sell signals in the stock market. The strategy works as follows:
- A moving average, such as a 20-day, 50-day, or 200-day moving average, is used to reflect price trends and volatility.
A potential buy signal is generated when the price of the stock rises above the moving average, and a potential sell signal is generated when the price of the stock falls below the moving average. The crossover of the price and the moving average is considered to be an indication of a change in trend.
