A moving average crossover is a technical analysis method used to identify potential trend changes. It is based on two moving averages with different periods: a shorter-term moving average, which reacts more quickly to price movements, and a longer-term moving average, which responds more slowly.
When the shorter-term moving average crosses above the longer-term moving average, this is called a bullish crossover. Conversely, when it crosses below the longer-term moving average, this is called a bearish crossover.
Moving average crossovers can be used to identify potential trend changes and spot possible buying or selling opportunities.
However, in markets without a clear trend, moving averages may cross repeatedly and generate false signals. These crossovers should therefore be interpreted in their market context and can be combined with other analysis criteria or filters.
The Moving Average Crossover Indicator displays crossovers between a short-term and a long-term moving average directly on your ProRealTime charts.
Bullish and bearish crossovers are highlighted on the corresponding candles using arrows or colored zones. Bullish and bearish signals can be displayed independently, and their colors can be customized by the user for both display modes.
Optional filters allow you to select which crossovers are displayed based on the price position relative to a filtering moving average or the short-term moving average.
Many parameters allow you to adapt the display to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.
To search the market for stocks showing a moving average crossover, use our Moving Average Crossover Screener.
Adjustable validation criteria:
Available filters:
Display options:
Video presentation:
Details of available settings:
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