Earlier we discussed the definition of moving average, as well as SMA and EMA.
Recall that the above-mentioned SMA, EMA indicators are always on, depending on whether the current price of the asset is below or above the average: if the current price is above the average – it is a signal to buy, the price is below the average – a signal to sell.
The SMA, EMA crossing indicator shows a change in the trend (“breakout”) and lights up only when the current price crosses the average price
So, if the crossover takes place from top to bottom – it is a signal to trade short (sell), if from bottom to top – it is a signal to trade long (buy).
