Moving averages are one of the most widely used indicators in technical analysis. They help smooth out price data to identify trends by filtering out short-term fluctuations. A Moving Average Crossover occurs when a short-term moving average crosses a long-term one, signalling a potential shift in trend.
There are two key types of crossovers:
- Golden Cross: A bullish signal that occurs when the short-term moving average crosses above the long-term moving average.
- Death Cross: A bearish signal that occurs when the short-term moving average crosses below the long-term moving average.
These crossovers are closely watched by traders as they can indicate the beginning of new uptrends or downtrends.
In this alert, you can configure both the short-term and long-term moving average durations. Common values are 20 or 50 days for short-term, and 100 or 200 days for long-term.
Shorter durations (e.g., 20/100) make the alert more responsive to recent price changes, potentially generating earlier signals, but with more noise and false positives. Longer durations (e.g., 50/200) produce fewer signals, but they are typically more reliable and suited to identifying major trend shifts. Choosing a combination balances sensitivity and accuracy based on your trading strategy.
