If you have been trading for some time and have been using Technical Analysis as a way to find trading opportunities, you would have probably come across the Moving Average Crossover strategy. It is probably one of the most well-known Technical Analysis signals out there. The strategy basically uses Two Moving Averages, one with a shorter period and the other with a longer period. A bullish signal is generated when the shorter period Moving Average crosses the longer period Moving Average from below. When the opposite happens, that is when the shorter period Moving Average crosses the longer period Moving Average from above, we have a bearish signal. Now the million dollar question is does this strategy actually work? There are those who swear by it, while others feel that it is the sure road to the poor house.
*DISCLAIMER*: I am not a financial advisor nor am I giving financial advice. I am sharing my biased opinion based on speculation. You should not take my opinion as financial advice. You should always do your research before making any investment. You should also understand the risks of investing. This is all speculative based investing.
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