Cross of EMA's - Need a experienced opinion

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Hi,

I have to detect a EMA’s cross, for this I have two possible scenarios:

1-Comparing the EMA’s value for candlestick index 0 (current) against index 1 (previous).

2-Comparing the EMA’s value for candlestick index 1 against index 2.

For option 1, I got many false detections, because the candlestick index 0 is not closed at all.

For option 2, I got the signal with delay.

E ach of these options have a disadvantage which penalize our trading.

Which of them is the more convenient?

Is one of these options the correct one or the standard one?

Thanks!

 

D

Standard?

Well, if you must use MA's, the most commonly used will be the EMA cross of the index 1, because as you have found out the 'wag' of index 0 will whipsaw you in too often

Personally I would also check that the index 1 of the 'slower' EMA was above its index 2 for a long signal

But also, I would usually be checking for divergence and always the 'bigger picture' situation on the longer timeframe/s

FWIW

-BB-

 
BarrowBoy:

D

Standard?

Well, if you must use MA's, the most commonly used will be the EMA cross of the index 1, because as you have found out the 'wag' of index 0 will whipsaw you in too often

Personally I would also check that the index 1 of the 'slower' EMA was above its index 2 for a long signal

But also, I would usually be checking for divergence and always the 'bigger picture' situation on the longer timeframe/s

FWIW

-BB-


thanks for your answer, just to know if I get it correctly, you are meaning the most common situation is comparing index 1 against 2, is it right?

 

Golden Rule:

Always trade WHAT YOU SEE

Never trade WHAT YOU WANT TO SEE

Better later but secure, than before and risky: Compare 1 and 2!!!

 

> you are meaning the most common situation is comparing index 1 against 2, is it right?

No - compare the index 1 of the fast EMA to index 1 of the slow EMA is most common

Additionally, I would also compare index 1 of the slow EMA to index 2 of the slow EMA

If you must use MA's that is

-BB-

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