Simple Moving Average Cross Over | MT4 Expert Advisors (EAs)

MA Cross Over MT4Moving Average is a lagging indicator used mostly by stocks and Forex Traders. Moving Average (MA) is one of the best trend confirmation tool, works best in trending markets. Moving Average is calculated over a period of time applied either to close or high/low. When used on lower time frames like M5, M15 & M30, Moving Average signals unclear cross overs. It is best to use a moving average over a larger time frame like 200 day SMA, 21 day EMA and much more.

Moving Average Cross Over is one of the best trend confirmation tool. It is wise to use two Moving Averages , one with a lesser period and other with a higher period. One of the famous and best Forex strategy is using Golden Cross and Dead Cross for entering in to markets. One can learn how to trade the markets, only by understanding how the confirmation tools work and at what conditions they won’t fit.

Golden Cross & Dead Cross

When 14 day Simple Moving Average (SMA) crosses above 28 day SMA, it is widely known as Golden Cross. This is a bullish signal used widely by the Forex traders. When 14 day SMA goes below 28 day SMA, that cross is known as Dead Cross and it is a bearish signal.

Automating MA Cross Over Trading Strategy

[adsense]Automated Forex Trading gives apt entry points with error-free trading. This Expert Advisor is compatible with Meta Trader 4. SMA Cross Over Expert Advisor involves two Moving Average Cross Overs.

Buy & Sell Strategy

  • When 14 SMA goes above 28 SMA of the current bar (Shift = 0), go for long.
  • When 14 SMA goes above 28 SMA of the previous bar(Shift = 1), go for long.
  • When 14 SMA goes below 28 SMA of the current bar (Shift = 0), go for short.
  • When 14 SMA goes below 28 SMA of the previous bar (Shift = 1), go for short.

Buy & Sell Close Strategy

  • When 14 SMA goes below 28 SMA of the current bar (Shift = 0), close long.
  • When 14 SMA goes below 28 SMA of the previous bar (Shift = 1), close long.
  • When 14 SMA goes above 28 SMA of the current bar (Shift = 0), close short.
  • When 14 SMA goes above 28 SMA of the previous bar(Shift = 1), close short.

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BackTesting:

BackTesting of results are done with EURUSD Daily Chart from 2008-01-01 to 2012-10-15.
View strategy tester report

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