20/50 Moving Avg Crossover

Discussion in 'Technical Analysis' started by GatorTrader, Mar 25, 2004.

  1. Has anyone backtested buying the closing prices of when the 20 day MA crosses the 50 day MA? It seems that most of the trades I do, or trending stocks that I'm in all began when the 20 day crossed the 50 day. I know this seems too simple, so help me out here.
    Look at the Dow(DJII) on a daily chart, the 20 day crossed the 50 at around 8000, which wouldve been the perfect time to jump in.
     
  2. SumJurk

    SumJurk

    There seems to be quite a few quys who do a lot of back-testing on this board. But if you don't get much help, you might take a look at this site. That's all they do, is back-test, and I'm sure someones tried something similiar.

    Wealth-Lab
     
  3. dbphoenix

    dbphoenix

    Only a few thousand. But be prepared for wide stops.
     
  4. gms

    gms

    Maybe this is off-topic: Isn't it the case that eyeing where moving averages were printed in the past on a chart is misleading because they change values relative to where consistent new data reconfigures the average?
     
  5. newtoet

    newtoet

    ???

    My moving averages never change value. The MA is based on past prices, not future. Once the bar for the timeframe you are watching is complete (closed), it should NEVER change - whether on a 5-min, Daily, Weekly, ...

    That is, unless you have some funky software.
     
  6. fan27

    fan27

    Of course this method works. Haven't you seen the WizeTrade infomercial? :p :p :p