sabtron Posted July 27, 2009 Report Share Posted July 27, 2009 Hello, Guy, ever wondered why your crossover plans sometimes fails?? - Cross over does not mean the market is turning... does it? Remember this is comparison of 2 MA of different period not what the price is doing.. - Best way to trade the cross over wait for the cross and confirm the trend by having the 2 MA running all most in Parallel and widening this means we have a strong trend.. Hope this observation will help someone. Regards Quote Link to comment Share on other sites More sharing options...
ryaz Posted July 27, 2009 Report Share Posted July 27, 2009 Re: Why Not to Trade MA Crossovers.. ... Best way to trade the cross over wait for the cross and confirm the trend by having the 2 MA running all most in Parallel and widening this means we have a strong trend... That's MACD. MACD changes sign on the crossover, and increasing MACD indicates divergence of two MAs or decreasing indicates convergence, hence it's name. regards Quote Link to comment Share on other sites More sharing options...
dr0o69 Posted July 28, 2009 Report Share Posted July 28, 2009 (edited) Re: Why Not to Trade MA Crossovers.. thank you indo-investasi... now i become a better trader... Edited August 7, 2010 by dr0o69 Quote Link to comment Share on other sites More sharing options...
abba Posted July 28, 2009 Report Share Posted July 28, 2009 Re: Why Not to Trade MA Crossovers.. basic problem with ma cross is the cross comes too late after price has already done its thing and also ma cross will kill you in a ranging market. First problem can be handled by entering not on a cross but when price moves convincingly above or below both MA's (need a good momentum filter) - second problem can be handled by your favorite trend filter - or only taking signals in the direction of the longer term trend. Quote Link to comment Share on other sites More sharing options...
nrnak Posted July 28, 2009 Report Share Posted July 28, 2009 Re: Why Not to Trade MA Crossovers.. whats the best value for moving averages ? is a cross over at 50 considered reliable indicator of a change of direction ? Quote Link to comment Share on other sites More sharing options...
superforce Posted July 30, 2009 Report Share Posted July 30, 2009 Re: Why Not to Trade MA Crossovers.. MA cross strategy work good on trending market only, but will fail on ranging market Quote Link to comment Share on other sites More sharing options...
TheGabriel Posted July 30, 2009 Report Share Posted July 30, 2009 Re: Why Not to Trade MA Crossovers.. Don't trade MA, they're so lagging. Quote Link to comment Share on other sites More sharing options...
Fajarini Posted July 30, 2009 Report Share Posted July 30, 2009 Re: Why Not to Trade MA Crossovers.. Clarence Chee from T3B Forex introduces modified MA in his trading system especially PIPS Intraday Trading System. He calls it HMA (Hull Moving Average). It is designed to be used with other trend identification indicator and to be applied on H1 time frame. It seems quite succesful. Just around the other corner, I prefer to study Price Action rather than depending on indicators. Price action gives you first hand info about what is happening in the market before to be translated into indicators. Since I don't like to baby sitting the computer's monitor, I practise swing trading and go in depth with studying price action. Indicator plays a very minimal role in my trading decision. I just use indicator to gauge the short term and long term trend. My entry and exit points are never based on indicators. It's just personal preference. Nothing to do with right or wrong. Trading is a probability game. Quote Link to comment Share on other sites More sharing options...
OneMAXer Posted July 31, 2009 Report Share Posted July 31, 2009 Re: Why Not to Trade MA Crossovers.. whats the best value for moving averages ? is a cross over at 50 considered reliable indicator of a change of direction ? Unfortunately, there is no a best value. All values exhibit the same behavior. Quote Link to comment Share on other sites More sharing options...
luke4p Posted August 1, 2009 Report Share Posted August 1, 2009 (edited) Re: Why Not to Trade MA Crossovers.. .................... Edited January 25, 2013 by luke4p Quote Link to comment Share on other sites More sharing options...
whyme1713006023 Posted August 1, 2009 Report Share Posted August 1, 2009 Re: Why Not to Trade MA Crossovers.. I used to run a free EA from Forex-tsd called "Universal MA Crossover";it failed terribly in ranging market. Even with a third MA as a filter it still failed.I tried a lot of other filters like RSI or Ema Angle,still no success. I've been looking for a good filter going with 2 MA crossover but haven't found one yet and if I do I think we can use that one alone;we don't need the 2 MA crossing Quote Link to comment Share on other sites More sharing options...
kawase Posted August 2, 2009 Report Share Posted August 2, 2009 Re: Why Not to Trade MA Crossovers.. 5SMA,16EMA,160EMA :-bd Quote Link to comment Share on other sites More sharing options...
sebastian1713006095 Posted August 2, 2009 Report Share Posted August 2, 2009 Re: Why Not to Trade MA Crossovers.. 5SMA,16EMA,160EMA :-bd I would use the 160 as SMA, why would you want the give more weight to the last bars when you are "averaging" 160 periods, doesn't make sense for me. Quote Link to comment Share on other sites More sharing options...
franknf Posted August 3, 2009 Report Share Posted August 3, 2009 Re: Why Not to Trade MA Crossovers.. I like to use the cross of 5sma over 1o ema for entry and the cross of 3ema over 5ema for exits. Works quite well Quote Link to comment Share on other sites More sharing options...
milvex Posted August 4, 2009 Report Share Posted August 4, 2009 Re: Why Not to Trade MA Crossovers.. Crosses like 5 EMA Close and 8 EMA Open work quite well Quote Link to comment Share on other sites More sharing options...
sebastian1713006095 Posted August 4, 2009 Report Share Posted August 4, 2009 Re: Why Not to Trade MA Crossovers.. I'd like to hear about sucessful strategies using short period moving averages (from 1 to 50) crossovers. All the test I've done wasn't very promising, I do like 55, 100 and 200 SMA to have a feeling of what the price has been doing during the past periods but I can't find a better way to use them. Quote Link to comment Share on other sites More sharing options...
BSurgeon Posted August 5, 2009 Report Share Posted August 5, 2009 Re: Why Not to Trade MA Crossovers.. I normally use 3MA and 50EMA... Still testing Quote Link to comment Share on other sites More sharing options...
sebastian1713006095 Posted August 5, 2009 Report Share Posted August 5, 2009 Re: Why Not to Trade MA Crossovers.. MA cross strategy work good on trending market only,better to use EMA than SMA. Why do you say EMA is better than SMA? Quote Link to comment Share on other sites More sharing options...
munalkarki Posted August 6, 2009 Report Share Posted August 6, 2009 Re: Why Not to Trade MA Crossovers.. HI I have recently trading through MA only, i am using 8 period MA (one is 8 period MA with shift 0 exponential and other is 8 period MA shift 2 Exponential) and i am using ADX 8 apply to Median Price H/L and i have disbale ADX line as white i am using +DI (Blue color) and -DI (Red Color) with a straight line in 18 and one more indicator MACD (8,13,9). All this 3 should match to trade. You can target 10 to 100 pips or more on this style. Regards Munal Quote Link to comment Share on other sites More sharing options...
verbtheory Posted August 7, 2009 Report Share Posted August 7, 2009 Re: Why Not to Trade MA Crossovers.. I personally use 3 EMA's for most of my trend confirmation. 10 EMA (applied to close, 0 shift) = Fast 50 EMA (applied to close, 0 shift) = Medium 150 EMA (applied to close, 0 shift) = Slow When the fast is above the medium and the medium above the slow and as said before the gap between MA's starts to widen and expand, the trend can be considered strong. The key though to trends is support & resistance. If you have an up trend that closes above resistance then you will see trend continue. If it closes below then beware as there may be some sideways motion before continuing the trend. There's a bunch of psychology thats behind this but I can get into that on a different post. Vice versa for short trends. I never use MA crossover's as trade signals, they are trade validation when you have a trade setup. My .02. Ciao! whats the best value for moving averages ? is a cross over at 50 considered reliable indicator of a change of direction ? Quote Link to comment Share on other sites More sharing options...
kmonge Posted August 7, 2009 Report Share Posted August 7, 2009 Re: Why Not to Trade MA Crossovers.. No trade with classical MA. I recomend you trade with minimal lag moving average. See mql4.com web. You have more information about this tipe of moving average. Quote Link to comment Share on other sites More sharing options...
Livi1 Posted August 7, 2009 Report Share Posted August 7, 2009 Re: Why Not to Trade MA Crossovers.. You've got to wait for candles to close before you jump in on a crossover. Plus an indicator here and there won't hurt. Quote Link to comment Share on other sites More sharing options...
learningfx Posted August 8, 2009 Report Share Posted August 8, 2009 Re: Why Not to Trade MA Crossovers.. Hi Fajarini, Do you got any good recommendation of course or book on Price action. I also keen in price action. I also personally feel trading is a probability game, only with those with discipline, patient and faith will make it. Quote Link to comment Share on other sites More sharing options...
ibdafx Posted August 8, 2009 Report Share Posted August 8, 2009 Re: Why Not to Trade MA Crossovers.. Hello, Guy, ever wondered why your crossover plans sometimes fails?? - Cross over does not mean the market is turning... does it? Remember this is comparison of 2 MA of different period not what the price is doing.. - Best way to trade the cross over wait for the cross and confirm the trend by having the 2 MA running all most in Parallel and widening this means we have a strong trend.. Hope this observation will help someone. Regards thank you when u want use MA crossover try use RSI (50) as trend, u will not have fails signal. regards Quote Link to comment Share on other sites More sharing options...
imatache Posted August 9, 2009 Report Share Posted August 9, 2009 Re: Why Not to Trade MA Crossovers.. Any MA Crossover is valid only when the market is tranding. In ranging markets you get lots of fake signals. Oh, and people who quote MA crossovers to illustrate a successful entry have the "postdictive bias" in the fact that they only use those examples that confirm the crossover signal (i.e. using information that wouldn't have been available at the time of the crossover). Quote Link to comment Share on other sites More sharing options...
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