Fade the MA crosses

[Hunter2020]

Anyone looking for a quick and reliable system? Well, here it is...

It only works for symbols with huge trading volume, like the SP500 index. Basically, what you do in this system is to fade the Moving Average crosses. MA 50 crosses over the 100? The SP500 thinks the retail trading bots will see this as a bullish signal, so the only way for the Market to "rip off" the retail traders is to go down.

Remember the most recent death cross on the SP500? What did the Market actually do? Stage a huge rally to "rip off" the shorters!

 

[Scataphagos]

"MA crosses" mostly work for trades that work out to be "big moves". Otherwise, they are "always late" and often a trap. Proceed accordingly.

IOW... if one trades "MA crosses", though "some" work out as hoped... one is betting on "big move this time/right now". Odds against.

As far as MA's go.... EVERYBODY tracks the 50 and 200 daily as S/R and often are willing to act upon it. Other MAs... not so much.

 

[murray t turtle]

Anyone looking for a quick and reliable system? Well, here it is...

It only works for symbols with huge trading volume, like the SP500 index. Basically, what you do in this system is to fade the Moving Average crosses. MA 50 crosses over the 100? The SP500 thinks the retail trading bots will see this as a bullish signal, so the only way for the Market to "rip off" the retail traders is to go down.

Remember the most recent death cross on the SP500? What did the Market actually do? Stage a huge rally to "rip off" the shorters!

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OK\
last time for 50dma + price to close below on 3 year charts\ most all the good moves are down\ down on weekly charts also.
No wonder \its a SPY bear market, SPY still below 200dma.
May work well with your 100 day moving average.
Something semi liquid like ALL it ignores the 50/200dma cross + mostly uptrends,above 200dma/ But Allstate is semi liquid, wide wide\bid ask.
[Edit, not a stock tip; its a trend comment]

 

[easymon1]

Anyone looking for a quick and reliable system? Well, here it is...

How long have you been trading this system?

 

[SoyUnGanador]

This is something I think I can actually test. I'll try it (eventually) with the SPY or SPX if I can find SPX data on yahoo finance.

 

[murray t turtle]

This is something I think I can actually test. I'll try it (eventually) with the SPY or SPX if I can find SPX data on yahoo finance.

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MOST likely better on SPY+ SH than qqq...........................................................
I use SPY> more than WSJ S&P 500 or thier 65 dma.,