Momentum Crossover

1. Introduction

Overview

The "Momentum Crossover" strategy targets long-term gains by focusing on volatile stocks. It uses the Relative Strength Index (RSI) and its moving average (RSI MA) to generate buy signals. When the RSI crosses above its moving average, it suggests momentum is shifting upward, signaling a potential trend change.

This strategy is best for highly volatile stocks, as they often show stronger price movements. By using daily, weekly, or monthly charts, it helps investors make well-timed entries without getting caught in short-term noise.

Objective

The strategy’s goal is to capture momentum shifts that lead to price increases. Investors buy when the RSI crosses above its moving average, aiming to catch the start of a new upward trend.

This method works well with volatile stocks, which can produce significant returns due to their larger price swings. The "Momentum Crossover" helps identify key moments to invest, filtering out unnecessary market noise.

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