Moving Average Cross (MAX)

Name Type Prerequisite Use Cases
Moving Average Cross (MAX) Trend SMA Defining broad bullish or bearish regimes (e.g., Golden Cross).

Definition

A signal generated when a fast SMA crosses above or below a slow SMA.

Mathematical Equation

\[ SMA_{fast} - SMA_{slow} \]

Special cases

  • Maximum possible value: Unbounded
  • Minimum possible value: 0
  • Behavior: Follows the price. The crossover of fast and slow MAs marks trend shifts.

Visualization

Moving Average Cross (MAX)

Trading Significance

  • Category: Trend

  • Use Case: Defining broad bullish or bearish regimes (e.g., Golden Cross).