Moving Average Cross

The Moving Average Cross displays a fast and a slow moving average (MA). A signal arrow is shown when the two MAs cross. An up arrow is displayed if the fast MA crosses above the slow MA and a down arrow is given if the fast MA crosses below the slow MA. The user may change the inputs (close), methods (EMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using Moving Average Cross

If the fast MA crosses above the slow MA a buy signal will be generated. Conversely, if the fast MA crosses below the slow MA a sell signal will be given.

How To Access in MotiveWave

Go to the top menu, choose Study>Moving Average>Moving Average Cross

or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//fastInput = price, user defined, default is close
//slowInput = price, user defined, default is close
//fastMethod = moving average (ma), user defined, default is EMA
//slowMethod = moving average (ma), user defined, default is EMA
//fastPeriod = user defined, default is 10
//slowPeriod = user defined, default is 20
//index = current bar number

fastMA = ma(fastMethod, index,  fastPeriod, fastInput);
slowMA = ma(slowMethod, index, slowPeriod, slowInput);
// Check to see if a cross occurred and raise signal.
buy = crossedAbove(fastMA, slowMA);
sell = crossedBelow(fastMA, slowMA);