ham1198
174 posts
msg #44761
- Ignore ham1198 |
6/8/2006 2:14:20 PM
...i saw this somewhere and came up with this filter. who knows this might be old as the hills. if so, i apologize, if not can anyone make it better or offer a comment.
Show stocks where both MA(7)and MA(21) crossed above MA(90) within the last 1 week
And date offset is 1
and Average Volume(90) is above 250000
and close is between 20 and 250
draw MA(7)
draw MA(21)
draw MA (90)
Triple Simple Moving Average Crossover (Triple SMA Crossover)
Triple Simple Moving Average Crossover was offered by R.C.Allen in the early 1970’s. The Triple Simple Moving Average Crossover trading system became instantly popular for its ability to locate trends.
The Triple Simple Moving Average Crossover trading systems generate even less signals then the Dual Simple Moving Average Crossover systems, as it eliminates some of the trading "noise" generated by high volatility. This in turn increases the profitability of the Triple Simple Moving Average Crossover systems and decreases the quantity of false trading signals.
4-9-15 day Simple Moving Averages are recommended for the very short term traders, and 5-20-60, and 7-21-90 for medium and the long term. As expected, the sort of interval you choose should depend on the time frame of your trading strategy.
There are several ways in which the Triple Simple Moving Average Crossover trading systems can be arranged. The following examples will use 7-21-90 day Simple Moving Averages to show Triple Simple Moving Average Crossover trading systems:
• BUY SIGNAL
The buy signal is generated when the medium speed simple moving average(21), that has been below the slowest simple moving average(90), crosses above the simple moving average (90).
• SELL SIGNAL The sell signal is generated when the fastest simple moving average(7), that has been over the medium speed moving average (21), crosses below the medium speed simple moving average (21).
The underlying idea behind the Triple Simple Moving Average Crossover trading system is:
• to use the slower Simple Moving Averages as a buy signal, thus insuring that the trend became indeed bullish;
• to use the fastest Simple Moving Averages as a sell signal, thus insuring that the profit is preserved.
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WALLSTREETGENIUS
983 posts
msg #44776
- Ignore WALLSTREETGENIUS |
6/8/2006 10:39:09 PM
Ham -
Thanks for posting. I love it when someone new get's right in there! But "Triple MA" crossovers IMO just aren't the way to go. It takes way too long for them to develop. In many 3MAX'S.....They happen in down trends, which makes it confusing to most uninformed traders. MOST 3MAX'S develop because of upside gaps! But who want's to buy then? Now on the other hand....they(The X's) make for great SHORTING opportunities! Those roll-overs are like poetry-in-motion! Bottom line....IMO there are just too many easier ways to find entry's. Like you....I too was a big "Triple" guy....but got tired of waiting! Didn't matter if it was 4-9-18, or 3-13-39, or just 13/26....too much disappointment and heartbreak......but let's see what some of the others think.......
Listen man...keep them(ideas)coming! And never let up to help!
Peace.
- RIGGS -
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Railwhore
69 posts
msg #44778
- Ignore Railwhore |
6/9/2006 1:28:00 AM
Well if were talking plain old SMAs then I love the old fashioned All About Technical Indicator's Extreme XY2 which is a fancy name for 8/21 spread:
Simple, sweet, and just plain awesome divergence spotter! No need to wait for any third xover. BTW ive used this for daytrading in conjunction with a 55wma with huge success. Just trade in the direction of the 55wma with tight stops and use Extreme xy2 xovers via the oscillator above for entries and exits. Just that easy.
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alichambers
48 posts
msg #44786
- Ignore alichambers |
6/9/2006 6:40:46 AM
Hi,
I found MA crossovers look *great* on a chart, but if you examine upclose - ie. the actual buy point on the cross, and then the sell point, they are not so good. The lag the market and very often the best part of the move has happened by the time they cross.
I use the "extreme point entry rule" devised by Welles Wilder - ie. once you get a signal, wait for the price to cross the high (if going long) or low (if going short) price of the previous day.
MA crossovers only work on large trending markets. In a sideways market you get whipsawed to death! If you can find a trending market, you're better off using an indicator such as Wilders DMI or Stop and Reverse System (SAR). These are more responsive than MA crossovers and will get you in and out of the trade in better time.
Hope this helps,
Alex
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