[DaveB]

What are the best two Moving Averages to use together on, for example, a 2hour time frame or any other time frame and what would they be set at, eg exponential, simple etc.

Thanks
Dave

[craig66]

There is no best combination of MA cross settings, every combination has drawbacks in different market conditions. If you are determined to use MA crosses I would do it on a H4 or daily timeframe and just try different combinations until you see something you like. I don't think pure Moving Average cross systems really work anymore, too low of a MA setting and you get whipsawed to death, larger MA settings don't tend to cross until the market is going in the complete opposite direction. As for type of MA, it really does not matter in the long run.

Search for the 'bunny cross system' if you want an example of a MA cross system, but read the thread carefully because there was alot of discretion used to make the system a 'success'.

If you are just starting out, I would give yourself a head start and just forget about MA cross systems (and multiple indicator systems in general, adding another statistically insignifigent indictor does not make a better system), I spent so much time testing all sorts of TA cross systems & none of them work, I quick internet search will quickly reveal the futility of these approaches. RSI, Stochastic etc, it's all s**t. All you can do is trade in the general direction (taking into account news & support/resistance) of the market and give yourself an edge though risk & money mangement.

Sorry for the rant, I'm just trying to save you the sea of crap I had to wade though.

[ramdas]

Originally Posted by craig66

There is no best combination of MA cross settings, every combination has drawbacks in different market conditions. If you are determined to use MA crosses I would do it on a H4 or daily timeframe and just try different combinations until you see something you like. I don't think pure Moving Average cross systems really work anymore, too low of a MA setting and you get whipsawed to death, larger MA settings don't tend to cross until the market is going in the complete opposite direction. As for type of MA, it really does not matter in the long run.

Search for the 'bunny cross system' if you want an example of a MA cross system, but read the thread carefully because there was alot of discretion used to make the system a 'success'.

If you are just starting out, I would give yourself a head start and just forget about MA cross systems (and multiple indicator systems in general, adding another statistically insignifigent indictor does not make a better system), I spent so much time testing all sorts of TA cross systems & none of them work, I quick internet search will quickly reveal the futility of these approaches. RSI, Stochastic etc, it's all s**t. All you can do is trade in the general direction (taking into account news & support/resistance) of the market and give yourself an edge though risk & money mangement.

Sorry for the rant, I'm just trying to save you the sea of crap I had to wade though.

What you have said about MA cross is correct, I have also tried many MA Cross stratergy and at the end realise crosses are like Death cross.. enter late and reach at Graveyard.

But Moving average works...But it is the way how we uses it.
I have posted one setup on Forex-TSD forum where i use Simple moving average as Support and Resistance. you can have a look at that thread.

here is link
http://www.forex-tsd.com/suggestions...ple-setup.html

Best Regards
Ramdas

[DaveB]

Thanks for your comments guys, I will bear in mind what you have said. Maybe trend lines and support and resistance is the best approach. I will see how I get on using those.

[initialsBB]

What was written above really amazes me since my results are completely opposite.
I've been writing trading systems for 1.5 years now and while there are many concepts that can be profitable, MA crosses for certain currency pairs (not all of them though) is one of the most profitable approach. After having written so many systems, i did not achieve any dramatically better results than those from MA crosses. So even if i had used only that, it would've been sufficient.
MAs have been around for a very long time, everyone uses them and they still work! They are trend-following and as long as there are trends they will work.

[DaveB]

Thanks initialsBB, I do like the idea of using MAs because they are simplistic and easy to read. Having said that, could you recomend any pair to use for cross over signals for a particualr time frame that would be overall successful. I do appologise in advance as I have little experience of MA crossover trading.

Regards,
Dave