Simple moving average crossover
- Simple moving average crossover
In statistics of time series, a simple moving average (SMA) crossover results from plotting two moving averages each based on a different period. The moving average formed by the shorter of the two periods is called the "fast" moving average, and the moving average formed by the longer period is the "slow" moving average. As changes in price occur over time, the "fast" moving average reflects these changes by moving upward or downward with the price quicker than does the "Slow" moving average. As a result these moving averages crossover each other. This crossover can be used to signal a change in trend and can be used to trigger a trade in Black Box trading system.
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