You would do well to understand just what a moving average is, and conversely what it is NOT. It is simply an average of the last x number of closes (or opens, or average close...or what ever you define). Price above or below this line simply means the market price is above or below its average. This in and of itself does not constitute a trading signal, and while many people here use it just that way, I think you will find it very disappointing.
Most of the successful traders enter longs when the price falls below the x moving average, when most of the retail traders are tying to sell. Conversely many of the more consistent traders are selling (or taking profit) when price is a great deal above the moving average when all the retailers are clamoring to buy.
A moving average can give you a general idea which direction the price is moving "on average", but as a signal to enter x number of pips above or below this imaginary line, is a loser's bet. Please be careful
How far in pips should a crossover or pullback to 10sma be allowed to run and close before not trading it in same direction.
Ignored
Ideally the closer to the moving average being used the more you are buy/selling at value however, you would have to take into account other variables that could make buying or selling at a distance from the moving average ''fair value''. Look at pending fundamental news release and map your support and resistance correctly. Finally, you have to examine the rules of the system that you are trading.
