Lesson

Moving Averages Strategy | Options Educator

Use SMA, EMA, golden/death crosses, and MA bounce strategies for trading.

In this lesson

What are Moving Averages?

• Moving averages smooth price to show trend direction
• SMA weights all prices equally, EMA weights recent more
• 20/50/200 are the most watched periods
• Price above MA = bullish, below = bearish

The 200-Day Moving Average

• 200 SMA is the institutional trend benchmark
• Above 200 = bull market, below = bear market
• Golden Cross = bullish trend change signal
• Death Cross = bearish trend change signal

Moving Average Trading Strategies

• MA bounce strategy buys pullbacks in uptrends
• Crossover strategies work best in trending markets
• Stacked MAs confirm trend direction
• Match MA periods to your trading timeframe

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