What is the Best Moving Average Crossover Combination?

Best moving average crossover strategy forex

Best moving average crossover strategy forex

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So, after reviewing my trades, I, of course, came to the realization that one moving average is not enough on the chart.

How to Use a Moving Average to Buy Stocks

Now shifting our focus back to the comparison of the two averages, the bottom line is the exponential moving average will stay closer to the price action, while the simple moving average has a slower/smoothed arc.

Best Moving Average for Day Trading

It should be noted at this point that the tests are not designed to find the perfect settings but to get a rough idea as to which moving averages work best.

Study Determines The Best Moving Average Crossover Trading

They used a total of 855 years worth of daily and weekly data from 66 different global indices to determine which two moving averages would have produced the largest gains for crossover traders.

Which Is The Best Moving Average? Test Results Reveal The

Think of the SMA as a compass.  If you want detailed coordinates, you will need other tools, but you at least have an idea of where you are headed.

Let’s take another look at that daily chart of USD/JPY to help explain moving average crossover trading.

Sun Tzu says it best in the Art of War, 8775 If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. 8776   [9]

Longer settings on a moving average will show you the overall direction that price is moving. You can usually see this with your eyes by watching the lows or highs, but a moving average will give you a more visual guide.

There are weighted, simple and exponential and to make matters more complicated you can select the period of your choice.

Similar to my attempt to add three moving averages after first settling with the 65-period as my average of choice, I did the same thing of needing to add more validation checks this time as well.

i didnt bother to read everything in detail. if you have done a smple moving average cross strategy test. thats not an accurate way to comapare them. hull moving average for example isnt based on cross overs. alan hull said you should put one on your chart and just play the slope changes. comapring simple and exponential averages are decent i guess.

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