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basic algorithmic trading strategy
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this strategy is called trading the 'golden cross' if the 50 day sma moves above the 200 day, or the 'death cross' when the 50 day sma moves below the 200 day sma. long-term indicators carry more weight than shorter-term indicators, and this cross, in a positive direction signals a change in momentum of the stock. you will not catch the very bottom using this method, but there is a better chance that you will catch a move near the beginning of a longer-term trend. golden cross information - zacks
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