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Does Some One have a simple Moving Average Cross to detect ?


bambangws

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Re: Does Some One have a simple Moving Average Cross to detect ?

 

I used 5, 10 and 20 when i started trading(it was in futures), using the five crossing the 20 as the entry point and the 5 crossing the ten as the exit point, but there have to be other conditions or you'll get whipsawed all the time. You also have to be patient because the winning percentage is not high, but it can still be very profitable. For some reason though the 5 and 20 numbers work the best that i could find.

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Re: Does Some One have a simple Moving Average Cross to detect ?

 

I should have mentioned i used those numbers on a daily charts, where the average (big) winner was 15-21 days (Small winners and losers generally got cut well before this point) I know this is a much longer time frame than most retail traders seem to trade forex. I'm not really sure how well those values would perform on a 1 or 5 min chart. As a side note, for establishing a trend, it is very useful to be to use the trend from a longer time frame and generally stay with that trend, as it is the more powerful one. So for example, if the 4 hour is up, and i get a down signal from the one hour, I will not trade the one hour from a short position under most circumstances.

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Re: Does Some One have a simple Moving Average Cross to detect ?

 

MA crossings are more of trend confirmation rather than an entry/exit signal. If you want to use them as signals I'd go with gza979, and use MAs only on large TFs since these are more trend driven and not with large differences in MA periods or you'll get whipsawed. Be ware that the market cycles aren't fixed in time to use fixed MAs, so it's better to use more complex MA crossings like MAMA/FAMA which are autoadjusting along with ADX to avoid whipshaws.

regards

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