What is MA with EMA Cross?
MA with EMA Cross draws a simple moving average and an exponential moving average of the same price, both 10 bars by default, and puts an arrow on every bar where they cross. A green up arrow marks the EMA crossing above the simple average; a red down arrow marks it crossing below. The arrows are drawn at the EMA's value.
This is not a fast and slow pair. Both lines cover the same length; what differs is the weighting. The EMA leans on recent bars and the simple average treats every bar in its window alike, so a crossing says the recent part of the window has moved away from the window as a whole. That makes it fire early, and often in a range. It does not confirm trend direction on a longer horizon or predict what comes next.
How to use MA with EMA Cross
- Up arrow. The EMA has crossed above the simple average. Recent prices are now higher than the window's plain average.
- Down arrow. The EMA has crossed below the simple average. Recent prices are now lower than the window's plain average.
- Early, not confirmed. Because no longer average has to agree, a crossing flags a possible turn early. Many such turns do not develop.
- Clusters of arrows. In a range the two lines sit together and cross on noise, so arrows bunch up.
These are ways to read the lines and markers, not entry signals on their own.
Settings
| Setting | Default | What it changes |
|---|---|---|
| MA Length | 10 | Bars in the simple moving average. Minimum 1. |
| EMA Length | 10 | Bars in the exponential moving average. Setting it differently from MA Length turns the pair into a mix of a speed difference and a weighting difference. Minimum 1. |
| Source | Close | Which price both averages use. Open, high, low and the averaged sources such as hl2 and hlc3 are also available. |
Adjust the two lengths and the price source in the indicator settings.
Calculation
The two lines are a simple and an exponential average, and each bar is checked for a change in which one is on top:
MA = SMA(price, 10)
EMA = EMA(price, 10), alpha = 2 / (10 + 1) = 0.18
up arrow: EMA was below MA, now above
down arrow: EMA was above MA, now belowThe EMA is the line whose side is read, because it is the one that responds first. Each arrow is placed at the EMA's value on the crossing bar and stays on the chart; a later crossing adds a new arrow rather than replacing the previous one.
The EMA starts from the simple average of its first bars, so with equal lengths the two lines start at the same value on the first bar where both exist and diverge from there.
Limitations
- It fires often. Crossing on a weighting difference rather than a length difference means small turns are enough to trigger an arrow.
- Sideways markets produce whipsaws. In a range the two lines cross repeatedly and each crossing gets an arrow.
- No longer-term filter. A crossing says nothing about the direction of a longer trend.
- The live candle can cross and uncross. While the current candle is open, the lines can cross and separate again. Only a crossing that holds at the close is final.
- It is not a strategy. On its own it carries no risk management, sizing or exit.
Frequently asked questions
It is a simple moving average and an exponential moving average of the same length, 10 bars by default, with an arrow on every bar where they cross.
Because the difference between them is the weighting, not the speed. The EMA leans on recent bars and the simple average does not, so a crossing shows recent prices pulling away from the window as a whole. It flags turns early, with more false signals than a fast and slow pair.
Yes. The indicator declares three inputs: MA Length, default 10; EMA Length, default 10; and Source, default close. Both lengths have a minimum of 1. Open the indicator's settings on the chart to change them.
Not on closed bars. Line values and arrows on bars that have already closed are not revised. On the live candle, a crossing can show and then go away if the lines separate again before the candle closes. Loading older history recalculates the EMA from a new starting point, so values near the start of the loaded range can shift.
Use the Add to chart button at the top of this page. It opens BTC/USDT on Binance in the Altrady Charts terminal with the built-in MA with EMA Cross already applied. On any other market, open the indicator picker on the chart and choose MA with EMA Cross from the Moving Average group.