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How To Trade Simple Moving Average Crossover
Enter trades. Let them play out. Profit.

Those are the goals of trading.

But if you’ve never traded before — or maybe you’re not profitable yet — those seven little words can be extremely intimidating.

Trading isn’t as easy as it sounds.

Here’s the good news: While it can be difficult to trade, it’s not impossible.

This strategy is perfect to use when you want to define the current big picture trend and also give you an idea when to go long or short. 

The moving average is the most popular trading indicator used by traders.

Important: Do not simply go short or long when you get the crossover, price action will be extended so it is better to wait for a retrace to a resistance or support area before you take the entry.

Here's how to trade the golden cross strategy.
The golden cross is when the simple moving average 50 crossover the 200. 

A bullish signal is when the 50 crossover the 200 from below and a bearish signal is when the 50 crossover from above.
Up trend - Buy at support as long as MA 50 is above MA 200.

Down trend - Sell at resistance as long as MA 50 is below MA 200.

Trend Reversal (Downtrend to Uptrend) - MA 50 crossover MA 200 from below.

Trend Reversal (Uptrend to Downtrend) - MA 50 crossover MA 200 from above.

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Copyright © Trading Walk. All Rights Reserved.