about why ema crossovers fail.

[masterstroke]

dear all,
i am a small trader and i have tried many different sets of ema crossover backtesting and i have got amazing results.. i know it creates prolems at sideways markets and it gives big losses or big profits at gap up or gap down only .. so i would like to know more about this and increase my knowledge..
if some senior can share their experiences and if they can give some reference materials .. it would be of great help...

 

[XRAY27]

hi
Moving averages represents the trend ,any moving average will be almost like that only you have to use other indicators for trades...
like.. macd or stochastic ........ divergence or cross over(of this indicator not moving average) and confirm trend with MA you can trade....
cross over trading with moving average will not work at all

 

[jagankris]

dear all,
i am a small trader and i have tried many different sets of ema crossover backtesting and i have got amazing results.. i know it creates prolems at sideways markets and it gives big losses or big profits at gap up or gap down only .. so i would like to know more about this and increase my knowledge..
if some senior can share their experiences and if they can give some reference materials .. it would be of great help...

Check out 315 EMA cross over system here in the forum.

 

[rh6996]

Check out 315 EMA cross over system here in the forum.

Here is the link to this thread suggested by jagankris:
http://www.traderji.com/technical-analysis/30428-shs-315-strategy-how-use-if-effectively.html

An useful link :
https://drive.google.com/file/d/0B_2ZpsxffrxTd01naTl1SjVWb3c/edit?usp=sharing[/QUOTE]

 

[dell]

masterstroke , one geniue suggestion; alone crossover of moving average can not make u profitable , as ur entry is late , exit is late ; also there is no profit booking point in that ;

u can use trailing stops , trendline's ,fib values , swing pivots, sr , imp decision points , nr7 , inside bar , and specific candlestick pattern's and some pattern developing ;

first u see on daily these all things ;
see whether it is trading in range or is in trending mode ; always buy on pause , pullback;never jump in

most importantly when u see a rally , don't directly jump in it , wait for pullback ,
as u r previously marked sr point's , fib values ,50sma , 200sma .....
see confluction there , if a doji , hammer or a engulfing pattern is developed in daily on these points after pullback , a buying opportunity above that pattern and u may just switch to lower tf and watch a opportunity there with ur trading system , really it works for me and hope same works for u .........

always first pullback is a buying opportunity , i give it 1* excellect r:r
second pullback is also buying opportunity , i give it 2* good r:r
i donnot trade third and fourth pullback , yet they have opportunity .......but i am not comfortable ........

there r many different methods for trading ,
see charts , charts and charts , automatically a vision is developed in ur eyes ;
u may not understand all these in current stage .........but will understand after some time when u spent some time in directionof maturing .

u may select any method , just stick to it , don't get divert by lossing streaks period , drawdowns ......u cannot avoid that , u can only do is that cut ur loosing trades and run ur profitable trades .......simply let ur profits run ......

any system u follow ........just keep in mind broder view of market , and don't hesitate if u r wrong cut ur trade , never avearge down ur loosing trade ...

i am trading in 15m tf , taking reference from daily , weakly charts.......
also am trying to figure out better way to sucess , still finding ways to consistent....
hope not bored u .............

 

[rh6996]

masterstroke , one geniue suggestion; alone crossover of moving average can not make u profitable , as ur entry is late , exit is late ; also there is no profit booking point in that ;

u can use trailing stops , trendline's ,fib values , swing pivots, sr , imp decision points , nr7 , inside bar , and specific candlestick pattern's and some pattern developing ;

first u see on daily these all things ;
see whether it is trading in range or is in trending mode ; always buy on pause , pullback;never jump in

most importantly when u see a rally , don't directly jump in it , wait for pullback ,
as u r previously marked sr point's , fib values ,50sma , 200sma .....
see confluction there , if a doji , hammer or a engulfing pattern is developed in daily on these points after pullback , a buying opportunity above that pattern and u may just switch to lower tf and watch a opportunity there with ur trading system , really it works for me and hope same works for u .........

always first pullback is a buying opportunity , i give it 1* excellect r:r
second pullback is also buying opportunity , i give it 2* good r:r
i donnot trade third and fourth pullback , yet they have opportunity .......but i am not comfortable ........

there r many different methods for trading ,
see charts , charts and charts , automatically a vision is developed in ur eyes ;
u may not understand all these in current stage .........but will understand after some time when u spent some time in directionof maturing .

u may select any method , just stick to it , don't get divert by lossing streaks period , drawdowns ......u cannot avoid that , u can only do is that cut ur loosing trades and run ur profitable trades .......simply let ur profits run ......

any system u follow ........just keep in mind broder view of market , and don't hesitate if u r wrong cut ur trade , never avearge down ur loosing trade ...

i am trading in 15m tf , taking reference from daily , weakly charts.......
also am trying to figure out better way to sucess , still finding ways to consistent....
hope not bored u .............

i am trading in 15m tf , taking reference from daily , weakly charts.......
Can you elaborate a bit more with real life example for this ! (Wont mind getting bored ! )

 

[sudoku1]

dear all,
i am a small trader and i have tried many different sets of ema crossover backtesting and i have got amazing results.. i know it creates prolems at sideways markets and it gives big losses or big profits at gap up or gap down only .. so i would like to know more about this and increase my knowledge..
if some senior can share their experiences and if they can give some reference materials .. it would be of great help...

Why not ask why do all moving average crossover systems not work, whether they are simple, or weighted moving averages?

 

[dell]

i am trading in 15m tf , taking reference from daily , weakly charts.......
Can you elaborate a bit more with real life example for this ! (Wont mind getting bored ! )

hope u not mind my reply..............................i not want any contoversy

 

[sudoku1]

u know i can not compete u , in terms of knowledge i am also behind u , u r a professional trader .......aka rh6996 ..........aka pcj1947 .............aka gkpc ............aka umeshmandal .........aka rkk ........aka.ccmb420.......aka.shravan .......aka...........aka............

u may understand what i want to tell u .........

i am a simple trader ..........did not want any contoversy ..........u r running proffesional services (group) ............i am a struggling trader .........with the help of some senior's here , i am able to some consistent ......further trying to improving myself ........

same as masterstroke ..........i also jugging here and there and i know at this time what a physocylogy of a person , i rembember myself so just put the thoughts that i have learn from my experience and by some senior's ..............and hope he will read it again and again , and foucus on above points to achieve sucess ...........

regarding the point ..........i clearly told that ,see all things on daily tf ........and when u see the things there , just go to 15 m tf , for small sl and with less risk .......also if ur system and r:r allows u ,than take that trade .........i did not play breakouts , i play only pullbacks after a breakout ..........


hope u not mind my reply..............................i not want any contoversy

WELCOME BACK rajgreen- PEACE

 

[Mr.G]

What in the blazes is going on?! There is a trading cartel here? Raj is back from two different IDs? WTF.