Interesting Crossover - Am I seeing things? | Forex Factory

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Interesting Crossover - Am I seeing things?

  • #1
  • First Post: Feb 14, 2007 7:14pm Feb 14, 2007 7:14pm
Put WMA 25 on the close and WMA 25 on the open on your chart, I prefer Eur/Usd on a 1h chart, it seems almost flawless....I have to be seeing things, seems to happen every time I come across something new lol.
  • #2
  • Feb 15, 2007 6:50am Feb 15, 2007 6:50am
Are you using any alert indicator for this ?
it would be nice to find some indicator to alert a few pips after the cross


Quoting mestx41
Put WMA 25 on the close and WMA 25 on the open on your chart, I prefer Eur/Usd on a 1h chart, it seems almost flawless....I have to be seeing things, seems to happen every time I come across something new lol.
  • #3
  • Feb 15, 2007 7:18am Feb 15, 2007 7:18am
Nothing new. Put a 50 or 55 MA on a 30M chart and you'll see a pretty good hit rate. Folks been playing with this forever. But, it's like anything else - people can't trade it b/c they'll start adding things like a 75 and/or 85 MA, zillions of custom-made Fib lines, 10 to 20 indicators from Fx Sniper, etc.

Do this: Trade these MA's (can be SMA's EMA's WMA's) on a 1hr and add only ONE indicator to confirm your entries/exits. Don't use arbitrary SL's and TP's b/c this means you really don't know what's going on. Work on this (SL's, TP's) and NEVER enter/exit differently from trade to trade. Do the same thing every single time. Do it for a month.

Oh, and don't forget to send me lots of $$ when you realize how easy Forex is to make a living with.

Cheers,

kt


Quoting mestx41
Put WMA 25 on the close and WMA 25 on the open on your chart, I prefer Eur/Usd on a 1h chart, it seems almost flawless....I have to be seeing things, seems to happen every time I come across something new lol.
  • #4
  • Feb 15, 2007 7:24am Feb 15, 2007 7:24am
can someone clever whip up an EA for it? (preferably hard-wired so no-one can add any more indicators!).
TRADE FOR SWAP
  • #5
  • Feb 15, 2007 7:24am Feb 15, 2007 7:24am
It does seem to look good, what kind of a tp and sl are you using?
  • #6
  • Feb 15, 2007 9:02am Feb 15, 2007 9:02am
In my Humble opinion moving averages (MA), there just random numbers entries (They get you into a trade). The greater the MA the fewer times price passes through and the greater the profit potential. The lesser the MA the more times you trade, the less the profit and the more losing trades. MA systems are all about Trade and Money Management, how many lots, where do you take profit, how far to place the stop for a certain pair.

If you trading the GBP/USD you will more than likley need a 40-50 stop for a lower MA and a larger MA. Trading a larger MA will give a better trade option as you are trading the same stop for greater profit.

A lot of chop can be filtered out keeping an eye on the daily moving range prior to cross, time of day the cross happens and the previous high and low.
For example:

Scenario 1: If you have a cross 2 hrs prior to NY close, the price has already had a daily range of 130 - 180, has broken the high by 60 pips then your possibly looking at a pullback. I would normally trade this scenario after the Asian session if it breaks through again.

Scenario 2: Prices crosses EA after London Open, Price is below, just broken through previous high and you have only had a 50 - 80 daily range then this would increase your probability of a succesful trade entry.

The rest has all to do with Trade and Money Management.

I trade two successful Moving average systems on larger time frames. Not because I have found some special MA value that just seems to lock into a pair but because I focus on the management of the trade and the Money Management.

Cheers
  • #7
  • Edited 10:05am Feb 15, 2007 9:04am | Edited 10:05am
I modified one of coders guru's experts. It's using LWMA's. Try it and see. Didn't test good for me.
rsrol
Attached File(s)
File Type: mq4 emacross2.mq4   6 KB | 525 downloads
If you can't find it or buy it, build it.
  • #8
  • Feb 15, 2007 9:14am Feb 15, 2007 9:14am
Quoting ktrade
Nothing new. Put a 50 or 55 MA on a 30M chart and you'll see a pretty good hit rate. Folks been playing with this forever. But, it's like anything else - people can't trade it b/c they'll start adding things like a 75 and/or 85 MA, zillions of custom-made Fib lines, 10 to 20 indicators from Fx Sniper, etc.

Do this: Trade these MA's (can be SMA's EMA's WMA's) on a 1hr and add only ONE indicator to confirm your entries/exits. Don't use arbitrary SL's and TP's b/c this means you really don't know what's going on. Work on this (SL's, TP's) and NEVER enter/exit differently from trade to trade. Do the same thing every single time. Do it for a month.

Oh, and don't forget to send me lots of $$ when you realize how easy Forex is to make a living with.

Cheers,

kt
I am currently doing this with a 50 EMA on a 30min chart. Are you waiting for the bar to open below/above, or do you go at the cross?
  • #9
  • Feb 15, 2007 12:59pm Feb 15, 2007 12:59pm
hey mestx41..... below is a quickie version of your rules..... the erousd chart looks good today due to lately the markets have been taylor made for ma systems..... if things stall the ma's will beat you to death unless you stand aside..... and of course you did not mention any stand aside rules so the ea below contains none.....

doing a backtest exposes those times....

have you considered using a higher time frame to confirm the lower time frames direction..... that can help...... also adding some money management code will boost returns..... and using differing periods, not 25 for both, should improve results.....h
Attached File(s)
File Type: mq4 25 lwma.mq4   11 KB | 1,002 downloads
to trade and code, keep both simple... no call to impress....h
  • #10
  • Feb 15, 2007 4:22pm Feb 15, 2007 4:22pm
you know what i don't get about these 'ma systems'? it's just as if the period they people choose are just random. I mean I've seen people swear by 13 periods, others 84, 25, 21, 52, 100, etc etc.

I understand that people probably come up with these numbers from observing the history. But since they are usually focused on 4hr or less, i think they just look in the past year or so. So picking these numbers is just curve fitting the price history. And when they see how 'close' the ma's are to the action of price in the time frame they worked with, it is as if they discovered the holy grail number for their moving average.

i don't know, just sounds wacky to me. just my 2 pips
  • #11
  • Feb 15, 2007 6:44pm Feb 15, 2007 6:44pm
Quoting hilmy83
you know what i don't get about these 'ma systems'? it's just as if the period they people choose are just random. I mean I've seen people swear by 13 periods, others 84, 25, 21, 52, 100, etc etc.

I understand that people probably come up with these numbers from observing the history. But since they are usually focused on 4hr or less, i think they just look in the past year or so. So picking these numbers is just curve fitting the price history. And when they see how 'close' the ma's are to the action of price in the time frame they worked with, it is as if they discovered the holy grail number for their moving average.

i don't know, just sounds wacky to me. just my 2 pips
Good point.
Normally whenever I use an MA, which I seldom do, I try to correlatete it to a Meaningfull Higher Timeframe. Simplest example being eg. on a 5 min chart, a 12bar MA represents the last hour, a 48bar MA represents the last 4 hours etc...
  • #12
  • Last Post: Edited 4:20pm Mar 7, 2007 4:01pm | Edited 4:20pm

Some Questions


- Nothing new. Put a 50 or 55 MA on a 30M chart and you'll see a pretty good hit rate.


are you saying you just trade the cross?
do You use candles?

Do this: Trade these MA's (can be SMA's EMA's WMA's) on a 1hr and add only ONE indicator to confirm your entries/exits.
Cheers,

What indicator do you use? & the setting?

Thanks
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