If You Trade Using Moving Averages, How?

Is is when the MAs cross each other or when price crosses over the MA?

Daytrading the ma crossover
https://duckduckgo.com/?q=daytrading+the+ma+crossover&t=h_&ia=web

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schizo said:
Moving average is just that. The average of retarded traders clamoring for a breakout or selloff. It used to work way back in the 90s. Now with all the algos and bots, however, it no longer works. These are just my own opinion, of course.
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For scalping the MA's are not really needed. You can watch price action and use a stop where price proves you wrong. For example, I went long ES, I was looking for around 2 points. If I had a 2 point stop I would have gotten stopped out since it went 2 points against me right away. Then it went back to BE, then I lowered my target to 1.5 points which was hit. Standard stops are easy to hit. This does not mean you don't want any stop but it should be relevant to other factors.
 
easymon1 said:
Is is when the MAs cross each other or when price crosses over the MA?

Daytrading the ma crossover
https://duckduckgo.com/?q=daytrading+the+ma+crossover&t=h_&ia=web

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Most people using MA crossovers mean it is where two MA's cross. They take the crossover as a signal to buy if the shorter period MA crosses above the longer period MA, and a signal to sell when it crosses below.

When a short MA is above a long MA, this is evidence of recently rising prices and potentially an uptrend. However, the crossover is a very poor entry signal and should not be trusted.
 
tomorton said:
crossover is a very poor entry signal
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Yeah, I gotta agree with ya there, however if used simply as a heads-up, it MIGHT offer a reason to watch for further developments. For example...

I'd never consider fooling with crossover of one ma over another ma as a signal.
Now if a price retracement brings price within proximity of the ma, and then if an actual SETUP forms at an area of support or resistance, and then if that SETUP TRIGGERS on a security that I am familiar with, well then it's good to have your trading plan in mind and act accordingly.

But to claim to have an automated strategy based on ma over ma crossovers is laughable until data proves me wrong.
 
When I use Moving averages for swing trading strategy, the 50 period moving average is standard for me but I also install at least two more moving averages to get a closer idea about the price movement.
 
Long-term analysis usually uses Moving average 200, the MA line may act as support or resistance, when price below the line, MA 200 as resistance, likewise when price above MA line, MA 200 work as a support level.
 
I really don't understand the hate for moving averages, and especially moving average crossovers. I have used them successfully for years. I have a fully automated strategy that uses m.a. crossovers on the daily and the 10 min. chart. Daily for trend and 10min.for triggers. Its long only because markets go up 80-90% of the time. It's definitely not perfect and has about a 40% win rate, but the reward vs. risk is about 7-8:1. What I have found is that in an uptrend it basically holds up with buy and hold. But, once the trend changes to down, it cuts and runs and dramatically outperforms buy and hold. This is very good for me as I am very concerned with capital preservation. Whipsaws are the order of the day but no system is perfect. Point of fact, I will try any other system anyone lays on me to compare it to a m.a. crossover system. I have literally tested hundreds of them and always comeback to this stupid little system I worked out.

FWIW, I also employ an RSI/m.a. crossover system. (this system will look for better entries and is a trend reversal system as opposed to the other one which is a pure trend system) The m.a. crossover system is more profitable, but the RSI/m.a. system has approx an 85% win percentage.

You take the good and the bad and hopefully you've made money when it washes out.
 
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