Simple moving average crossover
Encyclopedia
In the statistics
Statistics
Statistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments....

 of time series
Time series
In statistics, signal processing, econometrics and mathematical finance, a time series is a sequence of data points, measured typically at successive times spaced at uniform time intervals. Examples of time series are the daily closing value of the Dow Jones index or the annual flow volume of the...

, and in particular the analysis of financial time series for stock trading purposes, a moving-average crossover occurs when, on plotting two moving averages each based on different degrees of smoothing, the traces of these moving averages cross. The particular case where simple equally-weighted moving-averges are used in sometimes called a simple moving-average (SMA) crossover. Such a crossover can be used to signal a change in trend and can be used to trigger a trade in a Black Box
Black box
A black box is a device, object, or system whose inner workings are unknown; only the input, transfer, and output are known characteristics.The term black box can also refer to:-In science and technology:*Black box theory, a philosophical theory...

trading system.
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