During my personal study inyo finance and to understand moving average, I implemented the crossover stragtey for moving average, which takes the mean over a cartain time horizon.
Crossover Strategy : We are buy the asset when the short term moving average (20 day), crosses above the long term moving average (50 day).
When looking between the 50 day and 200 day moving average, looking above this range is called the GOLDEN CROSS and below it is called the DEATH CROSS.
We are selling the asset when the short term moving average crosses below the long term moving average
Taking the German Equity index we:
1.) Define the buying and selling signals
2.) Visualise the Asset Price Plot and the trading signals results
TO:DO
- Find the best Pair of Trading averages