200-Moving average and ranging markets

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    gnellas77gnellas77
    Participant
    Average

    hi gentlemen,

    i m interested in riding long term trends using a 200 mov average. the problem of course occurs when the market is ranging and whipsaws the 200-mov. average.

    Can you suggest to me a couple of ways to overcome this problem (the ranging market which increases the expenses because of commissions)?

    thanx in advance.

    #180316 quote
    JSJS
    Participant
    Master

    A well-known and annoying problem.

     

    What you can possibly do is sit a percentage above and below average and use “Crosses Over / Crosses Under”.

     

    You can also use a percentage of the standard deviation that you project above and below the average as is known from the Bollinger Bands.

     

    Another way is to have the breakthrough confirmed by another indicator.

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200-Moving average and ranging markets


General Trading: Market Analysis & Manual Trading

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gnellas77 @gnellas77 Participant
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This topic contains 1 reply,
has 2 voices, and was last updated by JSJS
4 years, 10 months ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 10/25/2021
Status: Active
Attachments: No files
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