Traditionally Moving Averages are usually used as a tool to define a trend of a particular stock or an index. However, there is one specific combination of three moving averages which I usually use for buying and selling purpose. The only backdrop this Moving Average has is that it cannot be used intraday, however, can be used on daily, weekly and monthly charts. And it works wonders.
I call it the ‘Triple Moving Average Crossover’.
Have a look below –
All you have to wait for in this trade set up is – Wait for the 13 day Moving Average to to intersect 5 day and 8 day Moving Averages. If the intersect happens in down trend – GO LONG. If happen in an uptrend – GO SHORT