Moving Averages (SMA & EMA)

Moving Averages (SMA, EMA) reveal trend direction. Learn how the Golden Cross, Death Cross, and triple-MA alignment work as trend signals for penny stocks.

What is Moving Averages (SMA & EMA)?

Moving Averages (SMA, EMA) smooth price data to reveal the underlying trend. A Golden Cross (50-day SMA crossing above the 200-day SMA) is the canonical long-term bullish signal; a Death Cross is the bearish opposite. Triple-MA alignment (10 > 50 > 200) confirms multi-timeframe trend agreement.

How Traders Use Moving Averages (SMA & EMA)

  • Trend direction: rising 50-day SMA = uptrend; falling = downtrend.
  • Dynamic support / resistance: price often bounces off the 50-day and 200-day.
  • Golden Cross: 50-day SMA crossing above the 200-day — canonical long-term bullish signal.
  • Death Cross: 50-day SMA crossing below the 200-day — long-term bearish signal.
  • Triple alignment (10 > 50 > 200): multi-timeframe trend agreement.

Where We Use Moving Averages (SMA & EMA) in Our Penny Stock Scans

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