Crosses

Of particular interest for traders can be when moving averages cross over, such as when a short term moving average crosses over a medium or long term average, as these crossovers usually represent a more permanent shift in price. Crossovers, which occur when one moving average line crosses another moving average line, is used to signal bullish and bearish signals. 

Short-term moving averages crossing above longer-term moving averages is generally seen as bullish and short-term moving averages crossing below long-term moving averages is generally seen as bearish. 

FXT Marketwatch/Trend displays the trend in the preferred time frame. Its default settings are the following: 

MT4 

- Fast MA period: 14 

- Medium MA period: 50 

- Slow MA period: 200 

MT5 

- Fast MA period: 20 

- Medium MA period: 50 

- Slow MA period: 200 

Traders can change the settings by the Settings’s box or by clicking on F7 and adjusting the parameters there. 

SMAs’ default settings 

- If the current symbol’s price is higher than the fast MA (e.g. MA20), then its box is green, otherwise it’s red. 

- If medium MA (e.g. MA50) is higher than slow MA (e.g. 200), then its box is green, otherwise it’s red.