Moving avg. crossovers and target price

[DublAK2]

The "mirage" profit target is kind of what I intuitively believed in terms of hopping onto trends.
I was thinking about choosing previous highs, even though there weren't any evidence that this would act as resistance.

Perhaps the 2:1, reward:risk is not easily applicable to hopping onto trends.

I typically tap out when the MA line turns downward. I don't usually wait for the cross under, but maybe I'm doing it wrong.

 

[deaddog]

How do I keep the risk to reward 2:1 if I don't see a ceiling? Just pick the most recent high? Do I not apply the 2:1 rule to crossovers?

Making the assumption you have a stop in mind, you can just double the distance between your entry and the stop and that would be your initial target.

 

[murray t turtle]

I only started retail trading this year (what a year to begin!). I'm buying long on a couple positions after this 4 day rally and hoping it sticks. For the moment I'm keeping my strategy to buying certain EMA crossovers since a crossover is the most tangible thing to see and not so subjective as patterns.

%%
[ Me, I ] keep it simple + skilled [KIS+S]. /SPY crossed /closed 50 week moving average , last week + still above it. So if you bought SPY/related , good moVe.
SPXS[bearish SPY] is much more below 200 day moving average , glad i did an exit today, early..................................................................................................... Risk is a personal matter/rewards= let profits run,

 

[SunTrader]

What timeframe are trades based on?

 

[murray t turtle]

Moving averages are lagging indicators following the trend. I believe it is best used as a trading system for the long haul. That said, it is not effective in range bound, trading ranges where whiplashes happen too often if you were to use it. Stick to it only when the stock or index you are trading is trending. That should enhance profitability. You should backtest any trading system you intend to risk your monies on. Otherwise, how do you know if you have even an edge (positive expectation) or no edge (negative expectation)? Just my 2 cents.

%%
MOVING average$, which i enjoy + use are much different\ from moving average crossovers[double or tripple lag.]
I'll use an extreme example to make my point.
I like + enjoy a 50 dma +200day moving average[with discretion ]; but i seldom use a 100 dma or 400day moving average/ though logic could suggest they maybe twice as good??
NOT saying no one could make money with those; sayin' i dont want to
MOST anything could work in 1999 or above 50 day moving average.
BUT i'm not wanting around for the market to trend exactly like 1999..................

 

[smallfil]

The "mirage" profit target is kind of what I intuitively believed in terms of hopping onto trends.
I was thinking about choosing previous highs, even though there weren't any evidence that this would act as resistance.

Perhaps the 2:1, reward:risk is not easily applicable to hopping onto trends.

I typically tap out when the MA line turns downward. I don't usually wait for the cross under, but maybe I'm doing it wrong.

If you are trend following, there are no profit targets. How could there be if the trend is strong and the stock continues to go higher or lower as the case maybe? You just continue riding the trend until, it ends. Profit targets belong to a swing trading strategy though since, you are trying to take advantage of the short term price swings.

 

[murray t turtle]

If you are trend following, there are no profit targets. How could there be if the trend is strong and the stock continues to go higher or lower as the case maybe? You just continue riding the trend until, it ends. Profit targets belong to a swing trading strategy though since, you are trying to take advantage of the short term price swings.

%%
Good points, good trend points.
ABOUT the only occasional advantages to profit targets;
less drawdowns +less. profits.
HOW is occasional less profits an occasional advantage?? WELL a fortune can be made buyin' off 50dma. So JAN, 2022,a SPY buy @ $472 or 473@ 50dma may do well mostly.
BUT this JAN trading 50 dma some without big drawdowns can do well.
Sounds like you noticed this \ even if you do this or dont do it/LOL.
SPY is $440.740 area now/ may close higher than $440. NOT a prediction; trend comment

 

[easymon1]

keeping my strategy to buying certain EMA crossovers since a crossover is the most tangible thing to see and not so subjective as patterns.

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.

Here's a guy who automated m.a. crossovers -
https://www.elitetrader.com/et/thre...oving-averages-how.348192/page-8#post-5502135

 

[Dogsun]

The "mirage" profit target is kind of what I intuitively believed in terms of hopping onto trends.
I was thinking about choosing previous highs, even though there weren't any evidence that this would act as resistance.

Perhaps the 2:1, reward:risk is not easily applicable to hopping onto trends.

I typically tap out when the MA line turns downward. I don't usually wait for the cross under, but maybe I'm doing it wrong.

How about exiting the trade when a 2:1 PT is hit OR the MA's cross under, whichever happens first?