The Moving Average Crossover Strategy Analysis Template creates a chart displaying a trading strategy that goes long when the market begins an uptrend and then sells when the price momentum begins to weaken. The Moving Average Crossover indicator is used to determine the start of an uptrend, while the Price Low indicator is used to determine weakening price momentum.

The Moving Average is a method of smoothing price streams. Comparing a smaller moving average to a larger moving average provides a means of measuring how short term prices are moving compared to longer term prices. A short term moving average crossing above a longer term moving average indicates a possible up trending market.

The MovAvg Crossover Trading Strategy enters a long position using a market order when the 9 bar moving average crosses above the 14 bar moving average. The trading strategy exits a long position with a trailing stop. Each bar, a new ‘trailing’ sell stop order is generated with a stop price set to the lowest price over the last 3 bars. When the price goes below the ‘trailing’ stop price, the long position is sold.

The trading strategy is setup initially with the following parameters:
Long Entry ‘ Avg Crossover Above(Close, 9, 13)
Long Trailing Stop ‘ PriceLow (Low, 3)

When a new chart based on the template is created, NeuroShell Trader asks if you want to backtest the trading strategy. If you answer yes, the length of the Moving Averages and the number of bars for the low price trailing stop will be optimized for each chart page in your chart.