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cowcool

MA Cross and Ranging Day Whipsaws

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I like 15 and 50 EMA Macross but this system tend to generate whipsaws on ranging day. Is there a way to make this thing works on a ranging day?. I have tried MA cross with ADX (an indicator to evaluate the strength of a current trend) and only enter a trade if the ma cross is confirmed by ADX > 25 , but this doesn't seem to be working.

 

Can MA Cross be used profitably on a ranging day and how to reduce whipsaws on a ranging day?.

 

Thx.......

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I like 15 and 50 EMA Macross but this system tend to generate whipsaws on ranging day. Is there a way to make this thing works on a ranging day?. I have tried MA cross with ADX (an indicator to evaluate the strength of a current trend) and only enter a trade if the ma cross is confirmed by ADX > 25 , but this doesn't seem to be working.

Can MA Cross be used profitably on a ranging day and how to reduce whipsaws on a ranging day?.

Thx.......

 

 

 

can you give some examples?

 

can you post a chart with annotation at places where the signal was not working?

 

many thanks.

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Here it is Tams , please take a close look at the highlighted sections. What I want to accomplish is to remove false/weak buy/sell signals

 

 

I don't see any ADX there.

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Tried dozens of trend/momentum indicators today with ema cross ... none work satisfactorily ... I however found out that EMA cross works better when used along side with trend lines ... ohhh the search for financial freedom through trading is really tedious. Hopefully this will work this time.

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Just tried it at demo account .. buying and selling solely using MA Cross can be disastrous . I have now included volume and mini/medium trend/counter trend lines , much more reliable result now. I noticed that even in a rangin day there are usually small/medium sizxed trend lines .

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Sure, however the chart you posted certainly looks like the winners would offset the losers. The first red box you highlight doesn't even seem to have a cross. It looks about 50 50 win/loss with maybe a scratch and a couple of winners that are of (comparatively) greater magnitude. The reason I ask this is I wonder what your expectations are from such an approach?

 

The characteristics of 'traditional trend following systems' (of which MA crosses and channel break outs are) is that you might have quite a few losers which are offset by the fewer but larger winners. If you start filtering you can change the parameters but you will filter good trades too.

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Tried dozens of trend/momentum indicators today with ema cross ... none work satisfactorily ... I however found out that EMA cross works better when used along side with trend lines ... ohhh the search for financial freedom through trading is really tedious. Hopefully this will work this time.

 

 

can you post a screen shot of how the indicators don't work with ema cross?

 

many thanks

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Cowcool, all MAXovrs will be whipping on choppy days. The ONLY way around it to stay out on choppy days or use a slope device, and only trade when the angle of the slope exceeds a value you will determine. Then, also change time frames on choppy days, go to a higher time frame. That will show you why you can't take trades that look good on the shorter time.

 

I used to trade the MA Xover and found using a 5 or 8 min with a 12 or 15 min for daytrading works IF you are careful with the slope. Not all software can give slope angles of a TrendLine or Lin Regression Line. Just to complicate this a little more, you need to be careful with the aspect ratio of your chart. If one chart has wider spacing the angle will be lower, than another chart will very close bar/candle spacing

 

Edited by Soultrader
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