Moving Average Crossover

[GatorTrader]

Does anyone know which moving average crossovers produce the best entry points? I use 20/50 MA crossover on stocks, does this work with e-minis as well.

 

[nkhoi]

yes, pull up the chart and you see them right away

 

[billpritjr]

I prefer to use dual EMA crossover however it is best to identify overall trend and not necessarily as entry signal per se.

Note that 50-day and 200-day is heavily watched on Wall Street, so one thing I like to do is scan for stocks bearishly breaking the 50-day, and if the sector they belong is also weak, AND the market trend is down, I will think about shorting them.

I use 50/100 EMA to determine bull/bear/lethargic-sideways condition, using the SP 500, NASDAQ as index

Once I get a feel for overall market, I will check which individual stocks I may want to trade.


These stocks must be in strong performing sectors (long) or weak sectors (short)


So......--->

1) Market Trend

2) Sector Trend

3) Individual stock trend

you want all 3 to be in sync

once that is done, I look at volume, price action, etc to pick my stocks


note I may only see 2 or 3 "great" stocks a month which meet the above criteria. This is not day trading

 

[agrau]

Quote from billpritjr:

These stocks must be in strong performing sectors (long) or weak sectors (short)

How to you determine strong or weak? MA cross-over, or strength relative to the market? Or even something different?

Thanks,
agrau

 

[billpritjr]

i use Investors Business Daily group strength ratings

 

[IndexTrader]

19>49 and when that doesn't work I switch to 21>34.
On Tuesday and Thursday I use 13>21 but only after 11am
None of the above seem to work on Fridays though!

Quote from GatorTrader:

Does anyone know which moving average crossovers produce the best entry points? I use 20/50 MA crossover on stocks, does this work with e-minis as well.

 

[agrau]

Quote from billpritjr:

i use Investors Business Daily group strength ratings

Thanks!