This famous moving average strategy is very easy to follow to decide when to buy (go long) and when to take profit.
The strategy goes long when the faster SMA 50 (the simple moving average of the last 50 bars) crosses above the slower SMA 200. Orders are closed when the SMA 50 crosses below the SMA 200. This simple strategy does not have any other stop loss or...
Its a simple Golden- and Death-Cross IndicatorBNC:BLX
... it highlights the Crosses and labels them. It also highlights the bar where the cross happend.
Enjoy and buy me a coffee if you liked it.
This momentum oscillator uses the distance between the 13/49 EMA ("Golden Cross" metrics based on latest research) to measure perceived momentum within a trend. The crosses on the 0 line indicate the crossovers of the EMAs. The colors are formulated around the signal line (default is 20 SMA). This can be altered to your preference.
A strategy is to apply two moving averages to a chart, one longer and one shorter. When the shorter MA 50 day scrosses above the longer term MA 200 days it's a buy signal as it indicates the trend is shifting up.This is known as a "golden cross."
When the shorter MA crosses below the longer term MA it's a sell signal as it indicates the trend is shifting down....
The usage is very easy. When the line is green you can open long position, when the line is red you can open short position and when it's black just check by yourself.
Usually I use it with RSI and Bollinger Bands, in order to determine when the signal is strong or weak.
Just play with fastest and slowest SC to adjust the smoothness.
The Golden Cross is one of the simplest market indicator who helps long term investors to entry a position.
With that in mind, I made a very easy to understand backtest showing how much we could earn if we entered in a Golden Cross and exit when Death Cross happening.
Take this code and try in your favorite market.
Of course, never use only this indicator to trade.