EA Moving Average Cross

@tommor
Hi Tommor - Just browsing this thread - you mention “additional filter for crossover”
I use 8EMA and 20SMA on 5mins chart, my ‘additional filter’ is Keltner Channel.
The Keltner is supposed to use 20EMA but I stumbled across Keltner using 20SMA (IG seem to have it as default). Rather than use Keltner as a range channel, I find it to be excellent as a momentum indicator.
When the 8EMA breaks out of the Keltner enter and exit when 8EMA goes back into Keltner. This qualifies entry and pre-empts exit in a trending situation.
Fine tune on 1 or 2mins chart.

1 Like

Interesting development. I know nothing about Keltner Channels but it seems an interesting use of the same.

I think yall just gave me my next coding project lol :laughing:

@enickma
Keltner channel
I have discovered the IG default setting for Keltner is 20SMA with a shift of 1.
These settings cannot be changed on IG, however, with TD365 they can be changed, so possibly you can change settings with other brokers.
As I only trade lower timeframes (5min 1min) the IG setting is good. If I were to use a greater shift than 1 I would not be getting out of the channel too often.
You may need to explore and find what works for you if you are using larger timeframes.

It is all about understanding what is happening in the market. When the shorter-term MA crosses above the longer-term MA, it’s a buy signal indicating that the trend is shifting up. But when the shorter-term MA crosses below the longer-term MA, it’s a sell signal indicating that the trend is shifting down.