Crossover Strategy:

A bullish signal occurs when a shorter moving average (e.g., 10-day) crosses above a longer one (e.g., 50-day).

A bearish signal occurs when a shorter moving average crosses below a longer one.

Support and Resistance:

Moving averages often act as dynamic support or resistance levels.

4. Time Frames Matter:

Short-term MAs (e.g., 10 or 20 days) react quickly but may give false signals.

Long-term MAs (e.g., 50 or 200 days) are more reliable but slower to react.

5. Limitations:

Lagging Indicator: Moving averages follow the price and may not predict sudden reversals.

False Signals: Especially in ranging markets.

Pro Tip: Combine moving averages with other indicators like RSI or MACD for better accuracy