OPEN-SOURCE SCRIPT

MA Crossover Detector

71

The Moving Average Crossover Detector is a custom indicator that visually shows buy and sell signals clearly on the chart. based on the crossing of two moving averages — a popular and beginner-friendly tool in technical analysis.

It plots two moving averages — One fast (short period) and one slow (long period) — and highlights crossover points:

Buy Signal (Golden Cross) – When the fast MA crosses above the slow MA.
Sell Signal (Death Cross) – When the fast MA crosses below the slow MA.

Features
Visual: Clearly shows crossovers on the chart.
Customizable: Choose periods, types, styles, etc.
Alert-ready: You can set alerts for crossovers.

The Moving Average (MA) Crossover Strategy is one of the simplest and most widely used strategies in technical analysis for trading stocks, forex, crypto, and other markets. It relies on the interaction between two moving averages to generate buy and sell signals.


Core Components

Short-Term Moving Average (Fast MA): Reacts quickly to price changes (e.g., 9-period or 20-period).

Long-Term Moving Average (Slow MA): Reacts more slowly to price changes (e.g., 21-period or 200-period).

How the Strategy Works

Bullish Crossover (Golden Cross):
Occurs when the fast MA crosses above the slow MA. Interpreted as a buy signal, indicating a potential uptrend.

Bearish Crossover (Death Cross):
Occurs when the fast MA crosses below the slow MA. Interpreted as a sell signal, indicating a potential downtrend.

Common Variants

Short-term trading
9 EMA
21 EMA

Swing trading
20 SMA
50 SMA

Long-term investing
50 SMA
200 SMA


Pros
Easy to understand and implement
Works well in trending markets
Can be automated for backtesting and execution

Cons
Lagging indicator: MAs are based on past prices, so signals come after the move has started.
Choppy markets = whipsaws: Generates false signals in sideways/range-bound conditions.
May underperform in volatile or mean-reverting environments

Tips for Improvement
Use confirmation tools: e.g., RSI, MACD, volume analysis, price action
Add filters: Trend filter (ADX), volatility filter (ATR), or time filter (session-based)
Combine with price structure: Support/resistance, breakouts, pullbacks

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.