Benzinga.com
0
All posts from Benzinga.com
Benzinga.com in Benzinga.com,

Study Determines The Best Moving Average Crossover Trading Strategy

Want access to this information before it is priced into the market? Get access to Benzinga's real-time news feed for only $1.

The Dow Jones Industrial Average got a lot of press this week after it succumbed to its first traditional “death cross” since 2011 when the index’s 50-day simple moving average (SMA) crossed below its 200-day SMA. Technical traders often view this crossover as a bearish long-term technical signal, but traders that sold the index and its components at the time of the cross sold the Dow following a drop of about 3.5 percent in less than a month.

The Concept Of Crossovers

The idea behind trading crossovers is that a short-term moving average above a...


More