Moving Average Crossovers

Fast crossing slow.

The fast average crossing above the slow one fast 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.