Moving Average Crossovers

Fast crossing slow.

The fast average crossing above the slow one fast var(--dia-185fa5) slow cross Two averages of different lengths will cross whenever momentum shifts. The fast one hugs price; the slow one holds the longer view. When fast crosses above slow, recent prices have pulled decisively above the longer trend. Golden cross The 50-day rising above the 200-day. Widely watched, widely reported, and about as late as a signal can be. Death cross The 50-day falling below the 200-day. Faster pairs 9 and 21, or 12 and 26. More signals, more of them wrong. A crossover is two lagging indicators agreeing with each other. By the time they cross, the move is well underway. They are a reasonable trend filter and a poor entry trigger, and the evidence for them as a standalone strategy is thin.

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Charts.