If price is trending along with the moving average, then it can help determine trade direction. If price is going above and below them, then ignore them and trade the ranges.
Being a 4 hour chart, the example may tend to exaggerate the vol/MA Cross correlation if occurs during main session. These three worked fine on Low relative Vol on 1 minute charts. Have you collected stats on MA Cross success rates vs With and Without Expanded Volume?
Moving averages can be thought of as "automatic trendlines". That's how I use them if I do. If the trend lines are flat, then the trend is flat and you range trade. If sloped, then you can use mean reversion + levels + volume to see if there will be a trend continuation. Don't use a 5 minute EMA to make decisions on a weekly timeframe.
Being a 4 hour chart, your example may tend to exaggerate the vol/MA Cross correlation if occurs during main session. These three on the RTY worked fine on Low relative Vol on 1 minute charts. Doc, Have you collected stats on MA Cross success rates vs With and Without Expanded Volume?
Plot a couple of moving averages on a chart instead of one. I personally use three moving averages at different positions and take a signal only when there’s a strong directional bias.
%% Good. Some charts, for example take a 50day moving average; +auto apply that to 50week ma.......... I prefer those auto trendlines, avoids any trader/investor bias.
Right, and you can trade _with_ the moving average from the most part or if your chart doesn't show a strong trend with the MA, find another chart.