Single Moving Trend

The strategy is a technical analysis trading strategy called the Moving Averages Crossover Strategy. It is based on the relationship between two Moving Averages, a shorter and a longer one.

To generate a buy signal, the strategy monitors the shorter Moving Average and looks for a crossing of the longer Moving Average in an upward direction. This indicates a potential change in momentum and a buy signal is generated.

To generate a sell signal, the strategy monitors the shorter Moving Average and looks for a crossing of the longer Moving Average in a downward direction. This indicates a potential reversal in momentum and a sell signal is generated.

The Moving Averages Crossover Strategy is based on the premise that a faster moving average, such as a shorter one, is more closely following the stock price. The crossover between the two Moving Averages is considered a signal of a change in momentum, which can help traders catch a long upward trend or avoid a long downward trend.

This strategy is based on two Moving Averages. A buy signal is generated when a shorter moving average is crossing a longer Moving Average in an upward direction. A sell signal is generated when a shorter Moving Average is crossing a longer Moving Average in a downward direction.

This trading strategy is often called moving averages crossover strategy. It is based on a fact that a faster (n<m) moving average is more closely following stock price. When a crossover occurs it usually shows that there is a change in momentum. This strategy allows you to catch a long upward trend or to avoid a long downward trend. It works well on "heavy" stocks with a low beta and when market volatility is low.

Formula

IF MOV(t...t - n) >= MOV(t...t - m)
THEN GO LONG
ELSE GO SHORT
where MOV is a moving average and n < m
e.g. n = 10 and m = 30

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