Interesting question, to which I have not found the answer in years of trading. Be careful of xovers, because of whipsaw movements in a sideways market. These can have you entering a market when you should be exiting and vice versa. In any case, my use for them is to detect a trend, not to trade off them. For trading, my favourite way is to locate pullbacks on the bars, themselves, after the average tells me the trend direction.
I can show you lots of charts with beautiful xovers that worked well all morning. It' would be hindsight, though. There are a lot of charts that fail.
Albert Carey
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enragedcow
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please don't rely on this information it is provided free of charge and i accept no responsibility for losses as a result of following it
although i'm skeptical of EMA/SMA crossovers following their logic leads me to conclude that depending what time frame you are using the periods for the averages should relate to it
for example, i trade eur/usd on 1m minute charts so i use an EMA of 60 periods because it is an hour
if i was going to use a MA crossover i would, following this reasoning, use a 60 period and a 30 period or perhaps a 60 and 15 (for 1m charts)
for stocks the hour timeframe isn't meaningful so perhaps using the most common periods would lead to the best outcome as a lot of technical analysis is self fulfilling IMO
although i'm skeptical of EMA/SMA crossovers following their logic leads me to conclude that depending what time frame you are using the periods for the averages should relate to it
for example, i trade eur/usd on 1m minute charts so i use an EMA of 60 periods because it is an hour
if i was going to use a MA crossover i would, following this reasoning, use a 60 period and a 30 period or perhaps a 60 and 15 (for 1m charts)
for stocks the hour timeframe isn't meaningful so perhaps using the most common periods would lead to the best outcome as a lot of technical analysis is self fulfilling IMO
