Moving Average Crossovers

Dear fellow TJ members,

I have been on this forum for about four months now, but haven't come across a thread which is fully dedicated to moving average crossovers. I am trying to find out which MA crossovers work in which particular time frame so that we can develop a trading strategy around them on a consistent basis.

Lets include the following MA crossovers signals in our analysis:

1.Price crossing an N period MA from above or below

2.Two different period MAs crossing each other

Lets restrict our analysis to Simple Moving Averages(SMAs) & Exponential Moving Averages(EMAs).

Currently I am using the default Price(all in one) chart in Amibroker which has 15,45 & 100 period SMAs within them. Price crossing 15 SMA works well on 15 min time frame on some selected stocks that I've observed.

Fellow traders please post your experiences regarding MA crossovers. Let us find out which particular MA crossovers work consistently on 5,15,30 min timeframes(for intraday traders) & daily,weekly timeframes(for positional traders).

The purpose of this thread is to find the right entry points using MA crossovers & putting wise stop losses.

You can post charts as well to aid other people's understanding.

So MA crossover fans, lets share our strategies to gain the maximum from this thread so that we can build a robust system around them.



P.S. People who are not fond of MA crossovers are requested to stay away from this thread.

What SH's thread do all about?

Hi Columbus,

I haven't come across SH's thread. Can u please post the link?

If that thread discusses all these factors, we can very well close this one down.

Cheers! :thumb:

It is quite famous thread, it has more than 1.4lakh views.Anyway ,here is
the link:
http://www.traderji.com/technical-a...rategy-how-use-if-effectively.html#post490804

nice one..keep posting

Hi Anayash,
You would've noticed that many times I've mentioned about SRMAC (SriRam's Moving Average Crossover) on my charts on "my charts (your charts too)" thread.
He is the director of Reliable stocks, Chennai and follows this system for quite some time. He has posted his results on the Yahoo Technical Investor Group many a times.
Time frame: 15 min (He is a day trader)
10, 20 and 48 EMAs
SAR overlay
Always in the trade
Conditions
Buy signal: 10EMA x 20EMA from below
Long Entry: The next candle's Close > Signal candle's Close

Sell signal: 10EMA x 20EMA from above
Short Entry: The next candle's Close < Signal candle's Close

Fixed lots; no provisions for adding the positions; always in the trade.

Comments invited.

Mike Brun's MA crossover

Hi Anayash,
This is another MA crossover by Mark Brun. Please see below the link for trade setups. You can add positions in this system as explained in the link.
htt p://www.for e x f actory. c om/showthread.php?t=89346

But sometimes, in a strongly trending market, you might miss the entry, as entry is supposed to be at the pull back; strong trending market may not give a pull back. So, I've modified the entry as per SRMAC system and added positions as per Mark Brun's system. Check below the Wipro chart for my explanations. I've used Wipro Daily chart.

Some of the below observations point out likely good combo for Mike Brun's system.
(9 EMA and 30 WMA cross over in NIFTY trading with 60 min set up. Seems to be good in strong trends and would keep one in the trade safeguarding against whipsaws.
Regarding entries, when the trend is very strong, there may not be a pullback and close below 9 EMA. We may be very late and miss out sizable portion of the move. Hence entry at cross over with one or two suitable filters is ideal, I believe. When the pullback happens, it is again a confirmation or a chance to add a second lot.
It has to be decided whether one has to device an exiting strategy or it is going to be SAR. Credit to JK)

Babu's views contd...
How true of missing an entry when the trend is strong! In the same chart below that of Wipro, the upmove entry will be missed if one has to wait for the pullback as it never happened. Though it happened, it was too late. Nice observation, JK!
Cheers!
Babu Kothandaraman
2010Nov-WIPRO LTDentry missed.png

On Mon, Nov 22, 2010 at 12:15 AM, Jayakrishnan wrote:

Babu,

I have a feeling that 9x20 or 9x30 WMA crossover gives better results on an intraday chart particularly for Nifty Spot (or future).

However, nothing wrong in observing this on a daily chart of individual stocks on an experimental basis.

Best regards,

Jk.

==========
A diamond is just another piece of coal that did well under pressure!!!

--- On Sun, 11/21/10, Babu Kothandaraman


From: Babu Kothandaraman
Subject: Re: [Technical-Investor] Wipro
To: [email protected]
Date: Sunday, November 21, 2010, 9:20 PM
Dear AS,
I've incorporated SRMAC with Mike Brun's 9x20EMA. Please note that I've modified Mike Brun's system to pair with 10x20 system. Then entry is based on SRMAC and adding positions as MB's triggers. With all the things stacked as explained on the chart itself, please review.
2010Nov-WIPROwhy it fell.png

On Sun, Nov 21, 2010 at 7:26 PM, Abhijit Selukar wrote:



Hi All,
Any reason for the fall in Wipro's stock?
Any news?

Regards,
AS

Can you explain one with Chart, please....
It might be easy to understand.

Above Wipro chart is a good example for long and short entry

Can you explain in detail, as I'm novice in charting?
Trying to learn charting but can't get it's Head & Toe!