Moving Avgs crossover

reddragon

Member
73 2
Hi all,
How reliable are Mov. Avgs crossovers as Future support/
resistance points ??? Am experimenting with 30 min C/stick
chart with 5 period ema, 9ema, 14ema and 50 ema plus a 3 month/ daily chart with the same period ema's.
Many thanks,
Reddragon.
 

oatman

Senior member
2,879 22
I look at Indexia (weighted) 21 and 55 on a 1min.
They all look similar :cheesy: , you have to experiment. They can be very good alone or as a back up.

Good luck
 

Glenn

Experienced member
1,040 118
Reddragon
Save yourself a lot of time and money - throw all indicators in the bin and just use naked charts.
Draw your own lines on them.
Then you'll start getting somewhere worthwhile.

hawddamor !
Glenn
 

oatman

Senior member
2,879 22
Are you suggesting that Fibonnaci couldn't count ?:cheesy:
edit, 2 Bs don't look right :cheesy:
 

Glenn

Experienced member
1,040 118
Never met the fellow, but I understand that he could add up, so he must have been able to count. :)
Glenn
 

Grey1

Senior member
2,186 178
Throw any Moving averages system into the bin .. Just watch the price action and its relative strength to a leading index.. That is all you have to know..
 

reddragon

Member
73 2
Hi all,
Many thanks to everyone who replied to my Q, you've
saved me a trudge up a blind alley. Back to the drawing board !!!

Rdrgn.
 

frugi

1
1,827 126
This EMA system has worked quite well on the S&P since 1/8/03...(like, wow) but will it continue to do so? I imagine I'll have to bin it with all the rest! :p





Sorry to blow my own trumpet as usual. :cheesy:
 
Last edited:

Grey1

Senior member
2,186 178
Frugi,

No disrespect but the only reason the MA has been working is because market been trending and we have the benefit of hindsight.. Is market going to trend in future or not is the KEY to future ...

Moving averages systems produce high number of losers and occasional good winners and are amongst the poorest trading strategies if not the poorest..

I can show you many many trading strategies based on more advanced MA such as Ehler's Adaptive system which fails to produce any acceptable results..

Is there any room for Moving average systems ? To be quite honest NO, .. however if the cross over lets you to trade more mechanical and helps to control the risk of your trade then go ahead..

I am no guru just thought to share my experience
 

oatman

Senior member
2,879 22
reddragon, I suggest you take a look yourself. It depends how you use MAs. There's no magic, no system and nothing is 100%. Anyone who trashes a method has a closed mind. It obviously doesn't work for Grey1 but you'll find a lot of successful traders here who use them.
 

welshwarrior

Junior member
16 0
Hi All,

I have found MACD combined with simple MA works extremely well on 5min spot forex (EURUSD in particular) mainly because the trends tend to have more momentum once they get going than the indices - therefore the lagging aspect is ok. BUT the indicator is near useles if it is flatlining. In which you probably won't be in the market anyway. And the other thing of course is, that you would never trade all crossovers - you still have to look at the strength of any move before you can decide the likely potency of the signal - but I think that it is the same for all oscillators.

Great thread to start - loads of traders use this as their primary tool I think - interesting to see what people really think.

toodle pip.
 

wanna-be

Newbie
4 0
MA's and MACD's are lagging indicators. As such they do not have predictive abilities. They do, however, excel at indicating the trend, or a change in trend.

The correct time to use them is in trending markets, when you will make a mint. In rangebound markets you'll get wiped out on the whipsaws. Unfortunately MA's on their own are not good at indicating the type of market, IMO.

Regards

Harry
 

ShigTA

Newbie
9 0
Has anyone looked at the way in March most stocks have reversed and some much more than others. This might be a silly question BUT, as you can tell a lot of 200MA are going to go up in a sustainable way. Can anyone tell me whether this will guarantee a sustainable rise in FTSE 100 equities? I get the impression it will!!!
 

Trader333

Moderator
8,612 939
In using technical analysis indicators there are no guarantees of
anything and all you can do is look to improve the probabilities of
an outcome and that is it.


Paul
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock