Moving Averages 200/50 Signal (MA200/50)
Submitted by Van Beek on January 7, 2011 - 11:09
The Moving Averages 200/50 Signal (MA200/50) is one of the most widely used Moving Averages Signals.
The MA200/50 compares the 200-day Moving Average with the 50-day Moving Average.
When the 50-day Moving Average crosses the 200-day Moving Average and ends up above it, you can see this as a “Buy” signal. This is also called the “Golden Cross”. The long-term trend is considered to be “Up” when the 50-day MA is bigger than the 200-day MA.
When the 50-day Moving Average crosses the 200-day Moving Average and ends up below it, you can see this as a “Sell” signal. This is also called the “Death Cross”. The long-term trend is considered to be “Down” when the 50-day MA is smaller than the 200-day MA.
You may expect the MA200/50 to provide you with one of the earliest “Sell” signals when the trend turns down.
See here the latest 200/50 Moving Averages Signal for the S&P 500.
