Moving Average Crossover Scan
Moving Average is a popular technical indicator use by technical traders. There are a few ways on how traders use the moving average.
1. Moving Average Crossovers - Generates a bullish signal when the short term moving average crossover the longer term moving average. You can use a 5Day and 10Day moving average crossover or 10Day and 15Day moving averages. You can also use multiple moving average crossover to generate a buying signal.
For example, you can use 3 or 4 moving averages. When 5Day moving average moves above 10Day, and 10Day MA above 15Day MA and 15Day MA above the 50MA, the stock is bullish.
5Day>= 10Day >= 15Day >=50Day
2. Moving Average Price Crossover - If the stock price is trading below moving average, a bullish signal is generated when the moving average moves above price.
Let's look at a real chart on how the moving average crossover works. The chart below shows a stock chart of BLC. The 5Day MA cross over the 10Day MA a few times. As you can see, if you buy the stock base on this pattern, you would have lose money 2 times and then profit 2 times. The profit is much bigger than the loss if you cut your stop loss quick enough.
The moving average crossover method works much better if you combine it with other technical indicators. You can combine the moving average crossover pattern with MACD, Stochastic, volume or other indicators you like. If we combine the moving average crossover pattern with volume, we end up with 2 winning trades as shown below.
1. stock goes up with strong volume indicates strength.
2. when the 5day moving average crossover the 10day moving average with strong volume, that indicates more strength.
How To Scan for Moving Average Crossovers
You can use our stock scanner to scan for moving average crossovers for free.
1. You can select today or a day from the past
2. You can select the 10 day and 15day crossover option or other parameters.
3. Hit the submit button and you will get a list of stocks that match your stock scan criteria.
You can also use the price and moving average crossover scanner.
1. Select a date
2. Select your moving average parameter
3. hit the Submit button.