What do you think of this swing mecha-trading-sytem?

I thought about using the D1-Chart with a SMA Crossover ( 5 x 13), when there is a crossover you can go long/short when it fits the overall trand, which you will spot at W1-Chart (ADX as indicator).

Another confirmation is of course the price itself (price action/candlesticks (D1), (support & res. at W1)) and 2 indicators at the H4-Chart (Parabolic SAR + RSI).

What do you think about this system?

MA crossovers are very poor entry signals. But MA’s in the right sequence vertically do help confirm a trend you can already see on the chart, and gauge its length and consistency. It would be high risk to take a trade in the contrary direction to the MA sequence.

Three time-frames?

Do the indicators tell you something you can’t already see and must definitely know?

so it’s better to use the crossover as confirmation. thanks.

i don’t really like indicators and i prefer naked trading but i heard i should use indicators at lower timeframes to get another confirmation for my trading idea which sources from my main timeframe (D1).

I’m not sure the indicators are going to be effective at confirming anything - that is, I think they might be very good at repeating what you see in the chart. For me an indicator must tell you something you didn’t know, and it must be something essential too. However, it all depends on how well the system works as a whole over a period of time so I’m happy to discover my doubts are wrong.

yes thats’s what i mean, i never place a trade based soley on indicators. after seeing and recognizing an opportunity on D1 by just looking at the price and candlesticks i open a trade, but only if the indicators tell me the same. never use indicators as signals or trigger, just for confirmation.

Have you done any back-testing yourself?
What are your own thoughts on it?
How did you arrive at the MAs that you describe, rather than any other ones?

Not yet since it’s a new idea. The reason why i chose those MA is that they are finonacci numbers

Nothing wrong with that. The MA time periods are just like the accelerator in the car - they generate information quickly or they do it slowly. If the MA’s are swapping positions very frequently, that can obscure a clear view of what price is doing.

That’s a very nice example thanks for that dude. Happy trading