MA cross-overs are just an entry signal. And not a very good one for reasons outlined above. But on a more general level, they are classed as a tactic. You cannot start with one tactic and develop it into a successful strategy. Think what you are trying to do. Start at the most general level - do you want to be long because price has been rising or do you want to be long because price has not been rising? When you know where you want to be, you will have eliminated the tactics that will not get you there.
From a bystander perspective. Every time I saw them crossover, it seemed like price was already miles away from the crossover. As though you missed the move or had too much downside before it would cross back over and be useful as a tool to signal you out. Maybe it had to do with my always playing with high vol products. Found it confusing.
This question is meaningless without the context. But if you want something useful, you can easily find the answer to your question by backtesting your system with and without the crossover and comparing the results.
You can test them yourself...its one those indicators that's easy to program. I wouldn't be surprise that your test results reveal them to be a better directional analysis than an entry trade signal. Thus, in my opinion you may have more success with them if you use them for directional purposes to support a different trade signal. I wouldn't bother being dependent upon the results from others that are anonymous and most likely using it different from each other. Thus, you gotta do the work yourself. wrbtrader
Hello BearTrades, I have used EMAs for extra confirmation. I suggest you back test for 100 trades and see what happens.
wrbtrader, You provided a good comment here. Well written. I have learned that indicators are not bad, if they are logical used to help me as extra confirmation of price direction for the timeframe I trade.
%% Good question; depends on if you want to be early or be late. I prefer late exits, in stuff like QQQ; but WSJ 65 dma is too little +to late- but 65dma could work with a squirrel like DOW. REALLY , BearTrender,,to make money, even with a good ma like 200 day moving average ; use discretion................................................................................................WHY?? because a 200 period ma is much, MUCH different in a UP trending/ bull market+ a polar bear market.You maybe noticed that-but i'm not a mind reader LOL NoT to confuse anybody; but some charts switch a 200 day moving average,automatic , into 200 months when we switch to monthy candlecharts
%% IBD/Inevstor's Weekly uses mostly ; a 50 dma + 200 day moving average. WSJ=65dma [too little /too late] + 200 day moving average. I'm looking a 10 year candle chart on a tech ETF; put in a double bottom on/@ 50 month moving average area- but that seldom happens..................................................................................................................