Does anyone know which moving average crossovers produce the best entry points? I use 20/50 MA crossover on stocks, does this work with e-minis as well.
I prefer to use dual EMA crossover however it is best to identify overall trend and not necessarily as entry signal per se. Note that 50-day and 200-day is heavily watched on Wall Street, so one thing I like to do is scan for stocks bearishly breaking the 50-day, and if the sector they belong is also weak, AND the market trend is down, I will think about shorting them. I use 50/100 EMA to determine bull/bear/lethargic-sideways condition, using the SP 500, NASDAQ as index Once I get a feel for overall market, I will check which individual stocks I may want to trade. These stocks must be in strong performing sectors (long) or weak sectors (short) So......---> 1) Market Trend 2) Sector Trend 3) Individual stock trend you want all 3 to be in sync once that is done, I look at volume, price action, etc to pick my stocks note I may only see 2 or 3 "great" stocks a month which meet the above criteria. This is not day trading
How to you determine strong or weak? MA cross-over, or strength relative to the market? Or even something different? Thanks, agrau
19>49 and when that doesn't work I switch to 21>34. On Tuesday and Thursday I use 13>21 but only after 11am None of the above seem to work on Fridays though!