Quote:
Originally Posted by dazza2
Hello can any of the system experts tell me if we have to wait until the moving avergaes have made a clean cross over and then cross back again before we trade or can a touch and then break apart again be a vlaid trigger?
For example yesterday 24th June the trend was up all day so I was looking long. At 6:30 BST (1:30 EST) the 5EMA dropped down and touched the 10EMA (on my chart the values at close of candle were identical at 16465). The 5EMA then moved back above the 10 EMA on the next candle. Was this a trigger? Or would I have to wait for the 5EMA to clear below the 10EMA and then cross over up again to get a valid trigger (as it did between 12:15 and 13:45 BST (7:15 and 8:45 EST)) ?
I didnt trade the first one as I wasnt sure what the rule was on touches and obviously missed out on a great trade. The second one I did as the rules were met but it was a loser.
Thanks in advance.
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As far as MA crosses go, that one was a tough one to call. On my chart the 5 EMA dipped 1 pip below the 10 EMA before crossing back up, so technically the MA's did cross over.
It still was not a proper Cowabunga trade though, because the indicators did not have the proper setup. The MACD was going sideways, not up, and the slow Stoch line was also going sideways, if not slightly down.
