49 Comments

  1. That's one of my rules. I stay in a trade as long as it remains ABOVE the 9ma for a CALL or BELOW the 9ma for a PUT. I do not use crossovers as they are a poor strategy for entry & exits.

  2. Using just a 3 and 8 smoothed ma's with a 14-period ATR works on any timeframe. By using the ATR for TP/SL, you can capture small movements so much better.

  3. This is an incorrect view of MAs. All MAs work. But they must be used in conjunction with market support and resistance. If a leading market support or resistance coincides with a MA crossover in the same direction then that entry is valid and risk is minimal. Needless to say, TA should ideally be used in light of macro analysis.

  4. These technical assertions will ultimately give you random entry and exit points and therefore you are gambling, in gambling with any system you may win but you will certainly lose over a long period. With the advent of programme trading you have zero chance of determining price action by attempting to reverse engineer the trading algorithms as they are tweaked constantly. Moving averages tell you whats happened in the past but crossovers tell you nothing consistent about the future.

    Indicators that may be helpful are pivot,resistance and support levels, volumes which are based on market data and depth. Options positions and futures prices also help such as reversals. If you are trading one pair, then you have no portfolio and have inadvertently created the highest risk portfolio possIble, one asset, thats gambling. Thats why 80-90% of retail traders lose money, the rest either don’t trade or make very little before they close their accounts.

  5. I tried to use crossover between fibonachi 233MA and fibonachi 4181MA on 1min timeframe. It works. Then I found his equivalent on higher timframes. Now I use crossover between 8MA and 233MA on timframes between 1h and 1d charts. So, it's not important on each timframe you use MA crossovers, More important is, which MA you use on each timframe. On lower timframes you need to use very long MA to minimise voliatility, on higher timframes you need to use lower MA to reach more quikly. My conclusion is:"Test which MA work on each timframe and then trade." Now I use Crossover between 8MA and 233MA/EMA for entry point and crossover between 8MA and 233HMA/TEMA for exit plan on timframes between 1h and 1dailly. It took me 6 months of trading to find this strategy. Now I finally have good strategy I need.

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