Of particular interest for traders can be when moving averages cross over, such as when a short term moving average crosses over a medium or long term average, as these crossovers usually represent a more permanent shift in price. Crossovers, which occur when one moving average line crosses another moving average line, is used to signal bullish and bearish signals.

Short-term moving averages crossing above longer-term moving averages is generally seen as bullish and short-term moving averages crossing below long-term moving averages is generally seen as bearish.

FXT Marketwatch/Trend displays the trend in the preferred time frame. Its default settings are the following:

MT4

- Fast MA period: 14

- Medium MA period: 50

- Slow MA period: 200

MT5

- Fast MA period: 20

- Medium MA period: 50

- Slow MA period: 200

Traders can change the settings by the Settings’s box or by clicking on F7 and adjusting the parameters there.

SMAs’ default settings

- If the current symbol’s price is higher than the fast MA (e.g. MA20), then its box is green, otherwise it’s red.

- If medium MA (e.g. MA50) is higher than slow MA (e.g. 200), then its box is green, otherwise it’s red.