MA Crossover System that works for me

EU bounced off Yearly Pivot.

Yearly pivots for major currencies.

Hallo,
I try to make a small Explanation about FloorSystem

The Chart has 8,20,100 EMAs only,
no Price....

s. Chart

atb
vvm

Hi AlistairC, this is how I scan my daily chart to look for setup (either continuation or reversal aka EMAs crossing). Previous day candle needs to close below (sell) or above (buy) 8 EMA. To sell. previous day candle must be a bearish candle & vice versa.


Once done, I'll just monitor the desired pairs.

you are quite right - it wasn't as clear on H4 (but there was a nice W-formation)

Thanks vvm. I didn't know that there's such a write-up. This is exactly the way that I've been doing my trading for almost a year.
Been achieving 70-75% success rate with this system.

D1 = for trade setup & trend direction
H4 = for entry

Awesome.... May 2023 be a successful year for everyone following this thread.

Thanks to AlistairC for starting this thread.

Cheers
yanah12

IMHO: In a strong Trend only
8EMA is a main Filter for a small Trade in the Direction of the Main Trend after PuB to EMAs Area
with a minimum 1:1 RRR
For a weak Trend
20EMA is a Filter

atb
vvm

Noted, vvm. Thank you

The last few pages in this thread are a rich and exciting resource for all of us who are keen to learn and improve our ability to trade using two crossover MAs. Thank you to all who have contributed .

All of the methods share similar features, basically variations on the same thing. I have tried to summarise them, perhaps too summarised and too simple to be very useful. You will still have to do your own reading.

Identifying a trend
Once the MAs have crossed over and a new trend seems to be forming, all of the methods have ways of confirming that trend. Some use only the trading timeframe (TTF), others also refer up to the higher time frame (HTF):

Methods that use the TTF only include:

1. 3 consecutive candles to be beyond both MAs and not touching them - this confirms a new trend is in place
2. a candle that closes beyond the 100 MA acts as trend confirmation (and in practice I suspect this might be close to "3 consecutive candles beyond")
3. MAs that both slope up/down reinforce the confirmation

Methods that use the HTF include:

1. HTF MAs that have crossed over in the trend direction, or (less certain) are just visually bullish/bearish, help confirm a TTF trend is in place
2. a previous HTF candle that has closed above/below the MA and is also green/red helps to confirm the TTF trend.

Identifying a pullback
Once we have a trend in place, we go to the TTF and look for pullbacks. For convenience and to keep it simple, we can consider small pullbacks, medium pullbacks and long pulbacks:

1. Small pullbacks consist usually of just two or three candles that remain mostly in line with all the other candles in the trend: e.g. pinbar, inside bar, two-bar pullback, engulfing bar
2. Medium pullbacks usually consist of three or more candles that form a local or short-term consolidation area (can be mostly horizontal or inclined as they progress up/down towards the MAs. If inclined, see next bullet)
3. Long pullbacks / retracements / refreshes usually have candles with successively higher/lower highs and lows (not strictly so) and usually retrace into or beyond the MAs.

Entries
Once we have a confirmed trend and a pullback we can try to find a suitable entry setup. There are many options depending on the trader's style and I can't cover them all here.

1. Short pullbacks: Inside bar, two-bar pullbacks and engulfing bars are fairly standard - entries just beyond the formation, stops just beyond the other side of the formation are common. But you must vary this according to your preference.
2. Medium pullbacks: If the short-term consolidation is mostly horizontal then if can you place a box around the consolidation, the entry should be just beyond box and the stop either on the other side of the box, or whatever suits you, perhaps the nearest swing point. If you get a candle formation signal (PB, IB EB or other) some will then ignore the box structure and go with that signal.
3. Long pullbacks: In a retracement / refresh you need to be cautious about entering too soon and perhaps being trapped in a losing trade. There are three options I am aware of, all using stop orders:
   1. trail the order up/down the retracing candles but conservatively to start with - i.e. keep one closed candle distance away from the current candle. You can tighten this as the retracement progresses and price action (PA) shows that the retracement might be ending
   2. wait for a clear PA signal, e.g. an engulfing bar or one of the many other reversal signals
   3. wait for a candle to break beyond the trendline (TL) formed by the retracement.

Exits
This is a story all on its own and interestingly, it is not covered much in the material I have been scanning. Perhaps nobody has a clear idea of how to handle this very important aspect of trading.

I haven't captured everything, just the essentials of it, so if your favourite idea isn't here, apologies! All the more reason for us to do the reading and put what we learn into practice. Here's to ever-more successful trading, and please share your trading experiences.

And that is because EXIT is so difficult and there are numerous methods.

1) S/R from earlier times.
2) ABCD, on a pull back you can se the ABC pattern and then a possible target should be the same length as the AB leg.
3) If you don't have a clue, then set a Risk/Reward. e.g. 1:2.
4) Price Action showing the trend is changing.
5) Lots of indicators shows exits - which we of cause are not using.
6) SL at latest swing.
7) Trailing SL following the structure.
etc. etc.

For me I decide a target from case to case and always a SL at latest swing.

Yearly or weekly, yanah12?

If you haven't looked at this yet (see references above), you may want to, as it is specifically about
"MA-cross-approaches"

This supply/demand zone indicator is good for identifying take profit levels. The zones disappear once they've been taken out, but if you look at where price bounced there was likely a zone there. You can set it for any timeframe. 0 is for the current timeframe, or you can set it at 60 or 240 (for example) to see 1hr and 4hr zones on a 15 minute chart, etc. Obviously your trading style will affect what zone to target. If you like shorter term trades then you can set a TP at the next zone, or if you like swing/position trades then you might want to hold on for more pips. In that case you can wait for price to bounce off a zone, then break the zone and continue, then use the high/low of the bounce to trail your stop. Anyway just thought I'd share that. Have a look and see if it's something you'd like to add to your tool box. And if not, that's fine too obviously. Have a good day.

I don't understand. Why do you ask me to watch a beginners video about MA?? 15 minutes waist of time.

Please treat each other respectfully. It's better just to walk away.

Ok. I walk away from the thread.

Apologies, I wasn't clear about what I meant by walking away. I meant to walk away from potential conflict. That's what being respectful to each other means.

Yearly pivots

Thanks for your reply and the indicators, too.

Based on all of this I have adopted some of the ideas and will explore others. Mainly I have placed the 100 EMA on my charts "officially" (I have been using 100 or 120 on and off for some time). When price closes on the trend side of the 100 EMA I will use this as a signal to trade, if everything else also looks good. And from my backtesting, it usually does all look good.

I also placed the daily EMAs on my H4 chart in dull colours so they don't get in the way. This is so I can keep an eye on the daily EMA status without having to go there each time. But a more useful reason to keep them is because they help show up when the EMAs are horizontal or close together, which is a good time to stay out. It is also an indication that a breakout might be coming. That's what we have currently on this chart - price is in consolidation, with an expected breakout on the way.