M.A. crossover signals

Discussion in 'Index Futures' started by Tom1234, Sep 21, 2007.

  1. Tom1234


    If anyone uses the M.A. crossovers as an entry signal, what do you for confirmation?

    I'd like to find out the best confirmation indicator for Moving Average crossover signals.

  2. See my answer on this thread:

  3. > If anyone uses the M.A. crossovers as an entry signal, what do you for confirmation?

    I think if moving averages are adaptive, they can generate good entry and exit signals. One example of making an M.A. adaptive is to use a cyclical analysis.
  4. Moving Average crossover systems are ineffective for entry and exit strategies due to their lagging nature. At best they may be used for confirmation, and then only in trending markets. The key to entry and exit strategies is in price action, pivot areas, support and resistance. (imho....)

    You may consider reading the following threads and evaluate the effectiveness for yourself... the ET members anekdoten and stealth trader shared some very valuable information in this regard.... and the importance of risk management.

    http://www.elitetrader.com/vb/showt...ge=6&highlight=sierra and ensign&pagenumber=1


    Many may disagree, however, I am convinced. My thanks go out to anek and stealth for their generosity and insight...

    Safe trading all
  5. sporky


    nonsense! as long as markets continue to form trends (and they will) MA crosses will work.

    I suggest that whatever you use to confirm it should be completely unrelated to moving averages, like momentum.
  6. moving average crossover systems tend NOT to work. because the index futures markets have adapted to such strategies and tend to be means reverting a good portion of the time.

    you need an edge to make money TRADING (investing is much easier fwiw - trading is harder)

    if you think MA crossovers are it, good luck. but you are starting with a pretty ridiculous system
  7. Tom,

    I strongly recommend you trash them.

    Useless stuff, tells you what happened 10 thousand years ago, if lucky.

  8. sporky


    markets adapting to specific trading strategies...what a farce. Guru voodoo.

    markets will always trend.
  9. markets are the aggregate of all traders action. they adapt. not in a anthropomorphic sense (like they care at all), but because they have to

    and of course markets will trend.

    it doesn't therefore follow that MA systems are a robust way to trade the markets.
  10. sporky


    this notion of adaptation assumes there are so many people using a MA cross system that it would cause a change in the market's nature.

    there's no way that's the case, there are too many different systems out there.

    MA crosses try to catch a trend. if one develops, the cross will get you in for it. exit strategies abound.
    #10     Sep 25, 2007