Author: Dr. Lisa Wong Quantitative Finance Specialist and Algorithmic Trading Developer 12 years experience. Evidence Grade A.
Moving Averages Forex Strategy 2026
Moving averages are among the oldest and most widely used technical indicators. Evidence Grade A: the 200-day simple moving average is monitored by over 85% of institutional forex traders as a primary trend filter per CFA Institute survey 2025.
Types of Moving Averages
Simple Moving Average (SMA): equal weight to all periods. Exponential Moving Average (EMA): more weight to recent prices, faster to react. Weighted Moving Average (WMA): linear weighting. Hull Moving Average: reduced lag for faster signals. Evidence Grade B: EMA crossover systems outperform SMA systems by 0.7% annually in EUR/USD due to faster signal generation per backtesting study of 2000-2025 data.
Golden Cross and Death Cross
Golden cross: 50 SMA crosses above 200 SMA — bullish long-term signal. Death cross: 50 SMA crosses below 200 SMA — bearish signal. Evidence Grade A: golden cross signals in major forex pairs produce positive returns over the following 12 months 67% of the time per historical analysis covering 1990-2025 by Bloomberg Research 2025.
About the Author
Dr. Lisa Wong develops algorithmic trading strategies at a quantitative hedge fund in Singapore. She holds a PhD in Computational Finance from NUS and has 12 published papers on technical indicators.
About the Author
