Moving Average cross Over/ Daily moving average / Exponential moving avrerage

 what is Moving average? 

The moving average would show the direction of stock price. A stock is trading above 20 day DMA  that means last 20 days price sustain above 20 days average. the short-term moving averages such as 10 days and 20 days moving averages would indicate short-term price movement. the 30 Days and 50 Days moving averages indicates midterm price movement, the 100 days and 200 days Moving averages long-term price movement.  theses various range of moving averages help to identify the stock"s trend. 

if the stock trading is above the 200 Days and 50 days moving averages that stock is in long bull run, if trading below those moving averages that stock is moving toward downtrend. 

Description of Moving cross over 

Different time period moving averages when meet each of them that is called Moving average cross over, by crossing different length period of DMA  would give trading opportunity to traders, Generally, short range  time period DMA crosses above longer period DMA, there the Buller will take advantage, 

in conversely, the short range moving average cross below the longer period Moving average, that stock is turning toward downtrend where the Bearer will take advantage when it occur. 

selection of Time frame

the traders will choose different number of days Moving averages, it depends on duration of stock holding, A higher number of days Holding periods the traders who should use 50 days and 30 days moving average, 

The traders may use 3, 5, 7, and 10 days moving averages to find a price movements of the same day, but i prefer, 3 days and 5 days will be a better option to take small profit. 

The Momentum trader would select a stock when being the stock price  trade above 20 days moving average,  while 10 days DMA move across the 20 DMA , the stock  could be move upward, the traders can get substantial profit but the holding duration will vary between traders,

The short-term traders would hold their position for few months, thus, they will use 48  days and 16 days moving averages to get handsome profit, 

the long-term investors who use 200 DMA and 50 DMA cross over to find a long-term momentum, the 50 days DMA cross above the 200 DMA that stock bullish over a year, likewise, the 50 DMA cross below the 200 DMA that stock entered into bear zone, the investors who get out from that stock. 

swing traders very often use the 200 DMA to spot trading opportunity, if a stock moving up toward  200 DMA, there swing trader would make a short position because 200 DMA would act as support and resistance, as well as, if the stock decline toward 200 DMA thus,  swing traders take long a position because, here 200 DMA act as support. 

in conclusion, select an appropriate time period for your trading strategy , once you find the perfect duration, then, do not change often your strategy, Moving averages is not a solo tools, use combine with other Technical tools.