Moving Average Crossover

Discussion in 'Index Futures' started by GatorTrader, May 5, 2004.

  1. 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.
     
  2. nkhoi

    nkhoi Moderator

    yes, pull up the chart and you see them right away :p
     
  3. 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
     
  4. agrau

    agrau

    How to you determine strong or weak? MA cross-over, or strength relative to the market? Or even something different?

    Thanks,
    agrau
     
  5. i use Investors Business Daily group strength ratings
     
  6. 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!

     
  7. agrau

    agrau

    Thanks!