The 90-day Moving Average Crossover is a widely used technical analysis tool that helps traders identify medium-term trend shifts in the market. This crossover occurs when a shorter-term moving average (such as 30-day or 50-day) crosses above or below the 90-day moving average. Traders use it to spot meaningful changes in momentum, trend direction, and potential reversal points. Because the 90-day MA captures nearly three months of price action, it provides more stability and reliability than shorter-period averages.
Uses of The 90-day Moving Average
Identifying Trend Direction
When the short-term average crosses above the 90-day MA → signals bullish trend
When it crosses below the 90-day MA → indicates bearish trend
Generating Buy and Sell Signals
Buy Signal: Short-term MA moves above the 90-day MA
Sell Signal: Short-term MA moves below the 90-day MA These signals help traders take advantage of medium-term trend changes.
Filtering Market Noise
The 90-day moving average smooths out volatility, making it easier to see the true direction of price action, especially in choppy markets.
Conclusion
The 90-day Moving Average Crossover is a powerful and dependable tool for traders looking to understand market trends with greater clarity. Its ability to filter noise, spot trend reversals, and generate actionable buy/sell signals makes it ideal for medium-term trading strategies. When combined with other indicators—such as volume, RSI, or support/resistance levels—it becomes even more effective. Mastering this crossover can significantly improve decision-making and overall trading performance.
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