Moving Average Crossover

What is a Moving Average Crossover?

A moving average crossover occurs when a faster EMA crosses above or below a slower EMA — indicating a potential trend change.

• Golden Cross: EMA 50 crosses above EMA 200 — strong long-term bullish signal, often precedes major rallies.
• Death Cross: EMA 50 crosses below EMA 200 — strong long-term bearish signal, often precedes prolonged downtrends.
• Bullish Crossover: EMA 20 crosses above EMA 50 — short-term uptrend signal.
• Bearish Crossover: EMA 20 crosses below EMA 50 — short-term downtrend signal.

Types of Moving Averages

There are two main types of moving averages used in this screener:

• Simple Moving Average (SMA / DMA): Calculated by summing closing prices over N periods and dividing by N. Equal weight to all periods. Formula: SMA = Sum(prices) / N
• Exponential Moving Average (EMA): Gives more weight to recent prices. Reacts faster to price changes than SMA. Formula: EMA = (Price × Multiplier) + EMA(previous) × (1 − Multiplier)

Key Moving Average Levels to Watch

• 200 DMA: The most important long-term trend indicator. Stocks above 200 DMA are in a long-term uptrend. Stocks breaking above the 200 DMA after a sustained period below it are prime swing trade candidates.
• 100 DMA: Medium-term trend indicator — useful for swing trades of 1–3 months.
• 50 DMA: Medium-short term — popular for identifying trend health in ongoing uptrends.
• 20 EMA: Short-term trend — widely used by intraday and positional traders for entries and stops.

How crossovers are detected

This screener computes EMA values on 1 year of daily candles. Crossovers are detected by comparing the current EMA relationship with values from 10 days ago (short-term) or 20 days ago (long-term). If the fast EMA was below the slow EMA 10 days ago but is above it now, a Bullish Crossover is flagged.

Understanding MA Crossover Signals

• MA above stock price → stock rises above MA: Traders read this as a bullish signal — the stock has regained short-term momentum.
• MA below stock price → MA rises (stock falls): Traders read this as a bearish signal — the downward momentum is dragging the MA up.
• Stocks breaking out of 200 DMA: These are prime intraday and swing trade candidates in the coming sessions.

Related Tools

• RSI Scans
• MACD Scans
• EMA 9-12-26 Screener
• Stock Trend Scanner
• Supertrend Scans