I was trading with moving average using period 5 and 10. Then I spoted a cross over when the trend is selling. The period 10 crossed the period 5. I guess it is buying.
off course I went buying. But the market continue selling. This happened three times. Now, my question is
2.why didn’t cross over trading worked?
:19:
first off you got to understand the 5 ma will cross over the 10 in the direction of price. I would also use longer term moving averages with a 5ma and a 10ma you are going to get whipsawed alot. And you really should not just be trading a crossover that by its self means nothing really.
i agree with bob. you gotta use a bigger MA than 10. you should check out huck’s trading log on the main page - the HLHB trading system. it uses moving averages as part of the system and should give you a better idea of how to approach a MA trading system. hope this helps.
You might want to try using exponential MAs! They remove some whiplash and prove more reliable on lower TFs