MA crossovers | Forex Factory

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MA crossovers

  • #1
  • First Post: Dec 20, 2007 11:08pm Dec 20, 2007 11:08pm
I have noticed when using MA crossovers as signals that sometimes a trade turns into a loss because a long is generated at the crossover when the top of the bar is closed and the position is closed out at the next crossover when the bar is closed out at the bottom of the bar. The same logic is applied to short trades. I have noticed from looking at a chart if trades could be entered 1 two 3 bars before a crossover, and if exited 1 to 3 bars before the next crossover, a trade would usually be more profitable than at the actual crossovers. Does anyone have any suggestions on how to generate signals just before a crossover for purposes of creating an EA?
  • #2
  • Dec 20, 2007 11:36pm Dec 20, 2007 11:36pm
Quoting eagle4x
I have noticed when using MA crossovers as signals that sometimes a trade turns into a loss because a long is generated at the crossover when the top of the bar is closed and the position is closed out at the next crossover when the bar is closed out at the bottom of the bar. The same logic is applied to short trades. I have noticed from looking at a chart if trades could be entered 1 two 3 bars before a crossover, and if exited 1 to 3 bars before the next crossover, a trade would usually be more profitable than at the actual crossovers. Does anyone have any suggestions on how to generate signals just before a crossover for purposes of creating an EA?
To determine A cross 3bars(or any number) before it happens, hmmm. It would require a method called.... TIMETRAVEL and as far as I know this is still not possible.
What you are asking is just thesame as 'do you know an indicator that tells me what the next 3 bars will be?'.

Lol, Sorry.
  • #3
  • Dec 20, 2007 11:49pm Dec 20, 2007 11:49pm
although knowing 3 bars ahead of time of an impending MA cross is impossible you could monitor the relationship between the 2 or more ma's and alert when they get within a certain distance going the right way. In other words, if the fast ma is below the slow ma but moving closer you could alert at a certain value. Hope that makes sense, it is late in the trading week and I am ready for some sleep. LOL!
  • #4
  • Last Post: Dec 21, 2007 5:15pm Dec 21, 2007 5:15pm
Not true - since I started this thread I found several links to web-sites that mention ways to predict MA crossover:

http://www.movethemarkets.com/blog/2...er-prediction/

http://www.tradecision.com/support/t...rossovers2.htm

I even found an indicator that is supposed to predict MA crossovers:

http://www.xeatrade.com/trading/11/E/347.html

I haven't tried this yet, so I can't vouch for it's reliability.


Quoting LoLoAC
To determine A cross 3bars(or any number) before it happens, hmmm. It would require a method called.... TIMETRAVEL and as far as I know this is still not possible.
What you are asking is just thesame as 'do you know an indicator that tells me what the next 3 bars will be?'.

Lol, Sorry.
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