When trying to make a decision on whether to buy or sell a particular security, the triple moving average crossover (often referred to as the "triple MA crossover due to keyword restrictions) can often provide partial guidance. As one of the most basic technical indicators, this technical indicator can provide a buy or sell recommendation based on the direction of the crossover, allowing traders to open or close positions accordingly.

Moving Average (MA) Defined

Based on the average value of a security, an MA considers past closing prices over a given period of time. Since the MA is be based on historical prices, the lagging data must not be used in isolation. The longer the MA, the more lagging it will be; the shorter the period, the less lag. As a result of this lag, the triple MA crossover works best in clear markets where there is a definite trend, and not so well in sideways or choppy markets.

What is a Triple Moving Average Crossover

A triple MA crossover is a technical indicator as to the direction of a stock price.

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