How can moving average crossovers help you make buy and sell decisions?

The overall arch on moving averages is that they identify the established short, medium and/or long term trends of a security’s price. The big caveat being that they are backward looking and price action might have negated said trend. It might be costly to run a strategy with a disproportionate weight of the evidence using moving averages or in isolation.

what I'm going to say is my personal strategy that I use under EMA. I use average of 8 days and 20 days. for me it seems to be like very helpful. at the end it's not only about these indicators. it's also about support and resistance which plays a vital role.

Imagine you're on a road trip and encounter bumps along the way. These bumps are like daily market fluctuations. Using a moving average is akin to averaging the road conditions over a longer stretch. It provides a smoother view of the terrain, helping you perceive the overall direction of the journey without being distracted by every small bump. Similarly, in trading, moving averages smooth out daily fluctuations to identify long-term trends.

In my experiencce, moving average crossovers are powerful indicators of trend change. Take for example the 'Golden Cross' (50 and 200 period simple moving average crossover). When the 50-period moving average crosses above the 200-period moving average this is a signal that a bullish trend may be starting. The inverse is the 'Death Cross', when the 50-period moving average crosses below the 200-period moving average. This signals that a bearish trend may be starting. You can use moving average crossovers on different time frames - I pay most attention to the daily, 1 hour and 15 minute charts.

So simple, the moving average is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. It is taken over a selected period of time and provides a smoother view of price movement.

Moving averages crossovers are buy and sell signals you get while using more than one moving average on a price chart. A fast and a slow moving average would react to determine which crossover are you buying or selling with. The fast moving average must cross above the slow moving average to determine a buy trend in the market while the fast moving average must cross below the slow moving average to determine a sell opportunity in the market. 2 or more moving averages are needed to determine crossover strategy while using moving average trend indicator.

The moving averages crossovers shows how the market recently is performing as compared to previous one..the curve of moving averages shows whether price is in momemtum or is about to loose the momemtum

The crossover between 2 moving averages lines. This method can be used as buying or selling signals. If the lines are crossing and going up it's called golden cross and can be used as buying signal. If the crossing is down it's called dead cross, it's a selling signal or indicates that downtrend is coming.

Certains traders utilisent les croisements entre 2 moyennes mobiles comme signal de confirmation pour prendre position. Le signal consiste généralement en un croisement à la hausse d’une moyenne mobile par rapport à une autre plus long terme pour une position longue, et inversement pour une position courte. Exemple : la moyenne mobile 20 périodes croise à la hausse la moyenne mobile 50 périodes —> position longue en daily, la moyenne mobile 20 périodes croise la moyenne mobile 50 périodes à la baisse —> position courte. Celui-ci constitue un signal parmi tant d’autres et n’est pas à lui seul un argument valide de prise de position.

As a trader, technical analysis is key, and the moving average is a widely used indicator. It averages a stock's daily price over a set period, revealing past trends and possible future directions. However, it's just part of the overall analysis. For more accurate insights, combine it with other signals like crossovers.

In general, we buy when the lines are forming a golden cross, and sell in dead cross. This indicator is simple and easy to understand even for newbie traders.

Timing! It is worth remembering that moving averages are created from past data, so when a crossover occurs, the timing is not always the most accurate. In fact, a weak, sideways trend will consistently tend to reflect very unreliable moving average crossovers. Keep this in mind: Market Structure > Moving Averages :)

In sideways market or when the market has topped or bottomed out, moving averages is not the right indicator to rely on since it will not provide correct signal.

Advantage; act as a reinforcement filter of bullish and bearish momentum follow through that can be used as signal for scaling in of existing positions. Disadvantage; lagging signal. Also, prone to false signals if used it solely. Need to use in conjunction with price action trend analysis such as prior breakout of supports or resistance and bullish & bearish divergences in momentum indicators at oversold & overbought regions. These type of analyses comes before moving averages crossovers

In my analysis of precious metals moving average crossovers are a double edged sword. They're fantastic for spotting trend shifts like short-term average crossing over a long-term one hinting at a new trend. Their simplicity and adaptability make them a go to for quick insights. They do have their pitfalls though like the delay due to the reliance on past data can mean missed opportunities. In volatile markets, they can send false signals, suggesting trends that don't pan out. I've learned to use them with caution, combining them with other indicators for a fuller market picture.

Combine moving averages with other technical parameters like bolinder bands, RSI, MACD to improve the trades. Historically, its seen the moving averages are used in combination like 3EMA crossing 5EMA Crossing 13 EMA..

Need to use in conjunction with price action trend analysis such as prior breakout of supports or resistances and bullish & bearish divergences in momentum indicators at oversold & overbought regions. These type of analyses comes before moving averages crossovers.

In my experience, I've found them really helpful in determining potential market entry/exit points or times. Coupled with other tools, but they can be really helpful. School of thought I went to advised using 3 moving averages, the 50/100 and 200, and crossovers can crossovers here can be really good way of determining trend direction/ reversal etc, or also a way of predicting breakouts. I found adding two more moving averages beneficial myself, so on my charts I've always got a total of 5 moving averages, the 3 mentioned above, also a shorter term, the 10moving average, this'd give you an earlier reversal signal in cases of reversal, or short term opportunities, I use a 365 moving average, on daily chart, way to spot a yearly breakout.

Moving averages are incomplete indicators so we need to combine it. Based on my experience, a combination with MACD will increase the win rate significantly.

In strong trending market moving average can works perfectly fine but if the market is sideways or volatile then moving average can give you false signal, so it is advisable to use moving average with other indicators also to get more surety about the trade.

Always look for timing and the volume. Golden cross dan dead cross can be false signals without this combination since we know that MA is an incomplete indicator.

I've learned that context is key especially when geopolitical events can overturn typical market patterns. Understanding the broader picture is as vital as the technical data. Investor psychology with its herd mentality plays a huge role particularly in sentiment driven markets like gold and silver. Recognising these behavioural trends is crucial for accurate market predictions.