Simple moving-average (SMA) crossover

Moving-average crossover occurs when, on plotting two moving averages each based on different degrees of smoothing, the traces of these moving averages cross

The particular case where simple equally weighted moving-averages are used is sometimes called a simple moving-average (SMA) crossover. Such a crossover can be used to signal a change in trend and can be used to trigger a trade in a black box trading system.

There are several types of moving average cross traders use in trading. Golden cross occurs when 50 days simple moving average crosses 200 days simple moving average from below.^[1] Death cross is an opposite situation, when 50 days simple moving average crosses 200 days simple moving average from above.^[2] Death cross is not a reliable indicator of future market declines.^[3]