A buy signal occurs when the short and intermediate term averages cross from below to above the longer term average. Conversely, a sell signal is issued when the short and intermediate term averages cross from above to below the longer term average. You can use the same signals with two moving averages, but most market technicians suggest using longer term averages when trading only two exponential moving averages in a crossover system.

Another trading approach is to use the current price concept. If the current commodity price is above the exponential moving averages, you buy. Liquidate that position when the current commodity price crosses below either moving average. For a short position, sell when the current commodity price is below the exponential moving average. Liquidate that position when current commodity price rises above the exponential moving averages.