Description
The Moving Average Two Lines strategy is based upon crossovers of fast and slow averages of price. The fast average's length is significantly less than that of the slow one. By default, crossovers are found for Exponential Moving Averages (EMAs), however, you are free to use other average types: simple, weighted, Wilder's, or Hull. A simulated Buy order is added when the fast average crosses above the slow one, while the simulated Sell order is shown when it crosses below.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price used in calculation of averages. |
fast length
|
The number of bars used in calculation of the fast average. |
slow length
|
The number of bars used in calculation of the slow average. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
Plots
| Plot | Description |
|---|---|
FastMA
|
The fast moving average plot. |
SlowMA
|
The slow moving average plot. |
Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.
Technical analysis is not recommended as a sole means of investment research.
For educational purposes only. Not a recommendation of a specific security or investment strategy.