>> Do you also use 20, 50 and 200 MA crossing as a trend indicator?
I've done lot's of backtesting with different MAs keying off just slope and MA crossovers. I'm not happy with the results, so i don't use them to trade off, just to watch. I have one chart in my Stockchart's list with NDX and 20, 50, 200 EMA and another with NDX and 20, 50, 200 Simple MA. Having both makes it easier to see what other people are seeing, since these 6 are the main ones referenced, by other traders. Some use the 13EMA, for aggressive trend following trading.
The MAs just makes it easier to see the trend.
The easiest way to understand the EMA, is that it gives heavier weight to the most current bar.
The MACD, a popular mometmum indicator uses the EMA in it's calculation. |
