-
SMA crossover trades: EUR/AUD and NZD/CHF
A crossover occurs when a shorter time period simple moving average (ie a faster SMA) crosses a longer-period simple moving average (ie a slower SMA). This could signal that the trend is about to change soon. The most well-known crossovers are called the “death cross” and “golden cross”. The first indicator is when the 50-day SMA crosses from above to below the 200-day SMA. This indicates the market will shift from bullish to bearish. The “golden cross” occurs when the 50-day SMA crosses above its 200-day SMA and is a bullish sign. It is important to remember that moving averages are lagging indicators so ... (full story)