MAs empower beginner forex traders by making the often-bewilderingly volatile world of forex easy to visualise, with identifiable patterns that show the possible best time to buy and sell.
The most iconic of these is the ‘cross’. To follow this strategy, you’ll plot or enter a single MA line into your trading chart and choose your time period 0 for example a 10, 20, 50, 100 or 200-period. This’ll give you a single MA line that time period and you will also see the current price.
When the current price of that forex market crosses your MA line from below, this is known as a ‘golden cross’ or a bullish cross, and it could be a sign that it’s time to buy. When the price crosses your MA line from above, it’s called the ‘death cross’ or bearish cross and it could be a sign to sell.
This is an accessible, no-bells-and-whistles MA strategy that is easy to follow and understand for even the greenest of forex beginners, although it’s far from foolproof as it does not take into account a lot market context, such as current events in the news.