MA Cross and Ranging Day Whipsaws

[corei]

I like 15 and 50 EMA Macross but this system tend to generate whipsaws on ranging day. Is there a way to make this thing works on a ranging day?. I have tried MA cross with ADX (an indicator to evaluate the strength of a current trend) and only enter a trade if the ma cross is confirmed by ADX > 25 , but this doesn't seem to be working.

Can MA Cross be used profitably on a ranging day and how to reduce whipsaws on a ranging day?.

Thx.......

 

[NetTecture]

There really are people still trying MA crossover as buy/sell signals? Don't work sorry.

The only reason I ever do a MA crossover system of ANY sort is to validate a trading framewokr works (i.e. executes trades) as they are simple to program But they are never profitable. Especially a 15/50 is really really really out of sync with the price (i.e. lagging) to start with.

 

[shadowninja]

That's the problem with them. When the price ranges, you're screwed. Try using them to give you an indication of the direction to trade in but use something else for the set up. Crossovers, because of their lagging nature, combined with the ranging issue, are more useful as a windsock.

 

[*ds-ds*]

Hi corei, one way to improve the effectiveness of your moving average crossover system on range days would be to increase the speed (lessen the duration) of your moving averages on days which are rangebound. However, clearly this requires some predictive ability as to which days are likely to be rangebound and which will be more trending in nature - hard to assess. Moving averages are inherently lagging indicators in nature and as such on rangebound days any system using soley moving average crossovers to determine entry is likely to have problems.