I've learned that weekly 10-30 EMA crossover is used in stock trading as a guide and a buy signal. You want to buy stocks when the crossover happens on the weekly time frame. I thought I can use it as a filter. To go long only pairs that are above 10-30 EMA on the weekly, and vice versa. To short only if a pair is below these EMAs.
To this, I'd like to add one more filter, daily 200 EMA.
If the price is above 10-30 EMAs on the weekly, and above 200 EMA on the daily, I'd only look for long opportunities. If the price is below these EMAs, I'd only look for short trades.
I guess this makes sense if you're a trend trader, but would like to see if someone can backtest this. Can someone add these parameters to some strategies they already use and backtest it? I'm curious to find out what the result might be.
To this, I'd like to add one more filter, daily 200 EMA.
If the price is above 10-30 EMAs on the weekly, and above 200 EMA on the daily, I'd only look for long opportunities. If the price is below these EMAs, I'd only look for short trades.
I guess this makes sense if you're a trend trader, but would like to see if someone can backtest this. Can someone add these parameters to some strategies they already use and backtest it? I'm curious to find out what the result might be.