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The MovAvg 2 Line Cross strategy moves away from price-action triggers and instead looks for a “crossover” between two different averages. This is often called a “Golden Cross” (bullish) or “Death Cross” (bearish).
How Logic Works
It uses a Fast Moving Average and a Slow Moving Average.
- Long Entry: Triggered when the Fast MA crosses above the Slow MA.
- Short Entry: Triggered when the Fast MA crosses below the Slow MA.
- The Goal: To identify a shift in momentum where short-term price action begins to outpace long-term averages.
Key Customizable Inputs
- FastLength (Default: 9): The shorter-term average.
- SlowLength (Default: 18): The longer-term average.
Strategic Considerations
- Lag vs. Accuracy: By waiting for two averages to cross, this strategy is slower than a single MA cross, but it is much more effective at filtering out minor price fluctuations.
- Momentum Shift: A crossover suggests that the “average” price of the recent past is moving faster than the “average” price of the distant past, indicating a strong new trend.
