MA cross system
Very Easy system. Inaffective if markets r flat. Moving averages r usually slow so u may not find this strategy highly affective if u r not familiar with MA working. But it is extremely easy and can be good in learning MAs.
Setup two Exponential moving averages on a chart. One EMA with period 9 and any color (assume Blue).
Set second EMA with period 14 and any color (other than first EMA color. assume Green).
If blue crosses green from below, enter long.
If blue crosses green from above, enter short.
SL is set where green crosses blue. TP shouldnt be less than SL.
The good or ill of a man lies within his own will. – Epictetus
Thx for sharing.
There r two other MA systems on this forum too. MA is not much effective as a trading system. It can help a little as an indicator in a system where there r other indicators too.
Moving averages are one of the most popular technical indicators. They are very convenient for smoothing out price data series and making the identification of the direction of trends easier, something that is especially helpful in volatile markets as the Forex. Because past price data is the core variable of their formula, they are considered as lagging indicators. Therefore, Moving averages better suit for trend following purposes than to predict when a trend is starting or is coming to an end. But who needs to predict the future?
@ Sasha
I dont agree with u. MAs r frequently used indicators to analyse trends. They r highly reliable. Even if they r laggy in predicting but they r good in confirmation about ur analysis in trendy market.
yes Moving averages r very common indicators. I dont have any percentage but I think very high percentage of traders use MAs in their trading.
The good or ill of a man lies within his own will. – Epictetus
thx for sharing another system. All MA systems r based on Crossings. Sometimes with 3 MAs and some times with 2 MAs.
You need to understand whole concept of Moving averages if u want to know why MA systems r based on crossings. I have found a good article on it. I hope u will find it useful
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_averages
Stick to your rules
You need to understand whole concept of Moving averages if u want to know why MA systems r based on crossings. I have found a good article on it. I hope u will find it usefulhttp://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_averages
It answers why "Lag" in MA is not actually a big disadvantage as many traders say. MA r helpful in defining trend. So it ensures that u r trading in line of current trend. Pros usually use it in conjunction with other tools which makes MAs more effective.
The good or ill of a man lies within his own will. – Epictetus
You need to understand whole concept of Moving averages if u want to know why MA systems r based on crossings. I have found a good article on it. I hope u will find it usefulhttp://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_averages
Good link. I also agree with conclusion of this article. Never use MAs alone for trading. Coz they will give too many false signals (when actually the trend is already ended). There r many strategies freely available in which MAs r used with mixture of some other indicators.
thankyou for sharing. Very helpful system. I am going to try it out. Simple and looks effective.
Originally posted by Jogithankyou for sharing. Very helpful system. I am going to try it out. Simple and looks effective.
Are u going to try it as an indicator or full system? Well maybe on demo u can try it as full system. Coz MAs r never good alone. They r only good if mixed with other indicators.