How to decrease minor cross over in moving average crossover

#1
Moving average crossover technique is a widely used one

Buy
MAlong < MAshort
sell
MAlong > MAshort

but this technique produces many unnecessary crossover signals like this one


How can i prevent these unnecessary crossovers? Tried increasing the duration but creates other unnecessary crossovers
 
#2
Moving average crossover technique is a widely used one

Buy
MAlong < MAshort
sell
MAlong > MAshort

but this technique produces many unnecessary crossover signals like this one


How can i prevent these unnecessary crossovers? Tried increasing the duration but creates other unnecessary crossovers
Dear mutuaguru,

Please try moving avrage of high n low on both frame, its retuse wipsaw.

Try n check

Light2001:lol:
 

kainiteh

Well-Known Member
#3
you can't eliminate whipsaw with MA, You get max whipsaw during trading range and at reversal due to buyer and seller try to dominate.... Try to create MA with large attribute so that you can trade long if price above this MA and go short if price is below MA... but it can reduce whipsaw trap since setup mean that but its not eliminate... if MA crossover without whipsaw then it is most profitable setup ever.....
 
Last edited:

amandeep86

Well-Known Member
#4
Moving average crossover technique is a widely used one

Buy
MAlong < MAshort
sell
MAlong > MAshort

but this technique produces many unnecessary crossover signals like this one


How can i prevent these unnecessary crossovers? Tried increasing the duration but creates other unnecessary crossovers
Simple,Learn Price Action to identify period of Range when Whipsaws occur and avoid trading during that period .:thumb::thumb:
 

colion

Active Member
#5
Moving average crossover technique is a widely used one

Buy
MAlong < MAshort
sell
MAlong > MAshort

but this technique produces many unnecessary crossover signals like this one


How can i prevent these unnecessary crossovers? Tried increasing the duration but creates other unnecessary crossovers
Two common ways are to increase the length or use a filter.
 
#6
Moving average crossover technique is a widely used one

Buy
MAlong < MAshort
sell
MAlong > MAshort

but this technique produces many unnecessary crossover signals like this one


How can i prevent these unnecessary crossovers? Tried increasing the duration but creates other unnecessary crossovers

Hello,

According to me one way to decrease the minor cross-overs is to decrease the time period between 2 Moving Averages. This will smoothen the data and both the MAs will follow the same path and will depict only big and major movements in the prices.
For instance, if you are using 50 and 100 day moving averages, u can reduce the time period, say 50 and 75-days Moving averages, and then look at the crossovers.
I hope this will help.
http://www.traderji.com/images/smilies/thumbsup.gif
Thank you.
 

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