Guide To Moving Average Crossover Strategy

Published on January 05, 2026 | 3 min read

The broader market was trading higher in early deals, with the Nifty Midcap 100 gaining 0.33% and the Nifty Smallcap 100 advancing 0.24%. Image: Shutterstock

The moving average crossover strategy is a trading strategy used by traders to identify potential buy and sell opportunities. It involves a crossover of two moving averages, one is short-term and the other is long-term, to identify the market trend.

Whether you are new to trading or an experienced market participant, moving average crossover is easy to interpret and can act as an effective tool while making trading decisions. Before diving deep into this crossover strategy, let’s get a brief overview of the term moving average.

What is a Moving Average?

A moving average is a statistical calculation of a series of past data points that gives an average value. In trading, the moving average is a technical indicator that analyses the past prices of an asset and gives an indication of the possible future price trend. The trend is a direction which can be upward, downward or sideways.

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Based on time, moving averages can be classified into two types: the short-term moving average and the long-term moving average.

A short-term moving average calculates the data over a shorter period, like 5 days or 20 days. These averages help to identify the quick price movements and shorter-term trends.
A long-term moving average calculates the data over a longer period of time, like 50, 100 or 20 days. These averages help to identify the longer-term price trends.

What is a Moving Average Crossover?

The moving average crossover is the intersection of shorter-term averages and longer-term averages. It points to a shift in the price momentum and a trend. When the shorter-term average crosses the longer-term average from below, it is considered to be a bullish crossover. However, when the shorter-term average crosses the longer-term average from above, it is considered to be a bearish crossover.

When a bullish crossover occurs, the trend of the particular asset is expected to reverse in an upward direction. On the other hand, when a bearish crossover occurs, the trend is expected to reverse in a downward direction.

Moving Average Crossover Strategies

Moving average crossover strategies are those trading strategies that are used by traders to predict the price direction of a particular asset. It can be broadly classified into four main strategies.

Moving Average Price Crossover Strategy

In this, only one moving average is plotted in the chart, and the other component is the price itself. When the price crosses the moving average line from below and closes above it, it indicates a bullish signal.

On the other hand, when the price crosses the moving average from above and slips below the average line, indicating a bearish signal.

Double Moving Average Crossover Strategy

In this strategy, two different-period moving averages are plotted in the chart to identify the trend. When the shorter time average crosses the longer time average from below, it signals bullishness.

When a shorter-time frame average crosses a higher time frame average from above, it signals bearishness and a shift in the price momentum.

Triple Moving Average Crossover Strategy

As the name suggests, in this strategy, three moving averages of different periods, like 10, 20 and 50, are plotted in the chart. It helps to filter out the unusual price moves and identify the reliable momentum shifts in the market.

If all the averages are pointing upward, it indicates the strength of the bulls and the ongoing bullish trend is expected to continue. However, if all the moving averages are reversing downward, it indicates bears are active, and selling pressure might be visible.

Moving Average Ribbon Strategy

In this strategy, multiple moving averages of different periods are plotted in the chart. This creates a wide, visual “ribbon” that reveals the strength and direction of a trend. If the ribbon expands, indicates a trending market, which can be in any direction. However, if the ribbon of the moving average is narrow, then it indicates that trend reversal is possible.

How To Plot Moving Average in Upstox Trading Terminal?

To plot a moving average in the Upstox trading terminal, follow the steps below:

Log in to your Upstox trading terminal by web or mobile app.
Add a stock to your watchlist
Go to the view chart of the stock you wish to trade or analyse
You will see the TradingView charting interface in Upstox
Go to the indicator option at the top
Search for the moving average
Add to the chart, you can customise the average period as per your choice.
Now, you can see the moving average line in the chart.

The moving average crossover strategy is a powerful tool to identify buy and sell opportunities in the market. With the help of various crossover strategies mentioned above, the trader can analyse the price and get a signal of a shift in the direction of a trend.

About Author

Subhasish Mandal

Sub-Editor

finance professional with strong expertise in stock market and personal finance writing, he excels at breaking down complex financial concepts into simple, actionable insights. Holding a Master’s degree in Commerce, he combines academic depth with practical knowledge of technical analysis and derivatives.

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About Upstox

Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.