A Triple Moving Average Crossover is a bullish signal that indicates that the price may rise.
The price is generally in an established trend (bullish or bearish) for the time horizon represented by the moving average periods.
Moving averages are used to smooth out the volatility or “noise” in the price series, to make it easier to discover the underlying trend.
By plotting the average price over the last several candles, the line is less “jerky” than plotting the actual prices.
In the triple crossover method, a bullish signal is generated when a faster-moving average crosses above an intermediate moving average which in turn crosses above a slower moving average.
In this state, the price is likely in an established uptrend.
The opposite is true when the faster-moving average crosses below the intermediate moving average which in turn crosses below the slower moving average., triggering a bearish event.
If this article seems useful to your then please click the like button below. You can also share your valuable feedback or ask questions in the below comment section. Also, subscribe to our newsletter for trading-related updates.
