Moving Average Crossover Trend is one of the famous and most used trend to find the buy and sell signals. It is a simple technique and using the Google Sheets it becomes quite simple to use it.
In Simple terms, A moving average is simply the average price of a stock over a certain number of days. There are mainly 2 types of moving average, short term (20 DMA and 50 DMA) which captures the short term price movement and long term (200 DMA) which captures the longer trend.
So the moving average crossover means that two lines of DMA crosses each other. For example 50 DMA crosses 200 DMA or 200 DMA crosses 50 DMA. There are two famous types of crossovers, the ‘Golden Cross,’ which is when the 50 DMA crosses above the 200 DMA which gives a strong buy signal. On the other hand, we have the ‘Death Cross,’ which happens when the 50 DMA crosses below the 200 DMA which gives a sell signal.
So I have created a Google Sheets and shown how you can also create a simple Google sheets and how we can capture the moving average crossover trend directly in the google sheets. You can go through the video to understand about the moving average crossover more. Now this crossover gives us the buy and sell signal but again it is not that we should rely on it always. We can implement our startegy and along with that we can also use this technique to rule our any problem with the strategy.
I feel it is for the begineer to understand about the stock market as well as some signal about it.
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