How To Use A Moving Average Crossover To Buy Stocks (Swing Trading Strategy for Beginners)
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- Опубліковано 3 сер 2024
- When trading stocks, traders often use the sma simple moving average, ema exponential moving average, 50 week moving average, 20 day moving average, monthly moving average or three month moving average, trying to find the perfect crossover strategy.
In this swing trading strategy you will learn:
• How to use moving average in stock trading and what are the best moving average settings - moving average explained
• How to swing trade stocks using moving average crossovers - swing trading for beginners
• When to use moving average and on what time frames are useful - moving average period
• How to trade moving average trends on higher time frames - moving averages for swing trading
• How to make money online trading stocks and Forex market using moving averages
• Which moving average to use on the h4 and d1 charts (simple moving average vs exponential moving average)
• A simple moving average crossover trading strategy to buy stocks including 200 MA strategy and 20 day moving average (best moving average strategy for higher time frames)
• What are the most useful moving averages and how to correctly use MAs for swing trading
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Biggest thing I've found with price crossing over an EMA or SMA is to *WAIT* for it to confirm the trend. Let the price move above (or below if short), test the MA line, and consider an entry if a trend appears. Just because price moves above the MA line from below does not mean it's going to run 500% in the next fifteen seconds.
Patience is key.
This hits right on my first month as a trader, that nervous "it's going up like they said! Buy buy buy! Yes i did it! Money!" Followed by the instant gut punch watching it drop 😂
Video Summary:
Never use MA in range bound market or on lower TF.
MA cross overs (MACO) work with fidelity only 10-15% of trading days if you are lucky.
MA cross overs don't work on lower time frames, period.
MA are lagging indicator, only tells you when trend has happened.
One good thing is MA cancels noise but on lower time frame MA has a lot of noise too.
MACO don't work in sideways market. Stop loss don't stand a chance.
How to take advantage of MA:
1.Use the slope of MA : IS uptrend
2. Price location: If PA above long term MA (EMA 200) : look to long opportunity
If PA below MA (EMA): Short
3. An SMA or Area between 2 MA can be considered a dynamic area of S/R
When a buy signal is generated, Please wait for the candle to close and crossover to actually occur, other wise Fake out will kill your capital.
I personally use 200 EMA and 20 EMA on a daily time frame to determine MACO.
No universal MACO that works in all markets. Continue back test to see if your EMA 20/200 works!
^^^^^^^^^^^^^^^^^^
The kid you get notes from when it is test time.
Why do you use 200 MA vs. 100 MA
@@sahrfoyoh9214 everyone uses 200 and no one uses 100
SAHR FOYOH most institutional investors use it
Thanks sir
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So many little things to put into consideration for lucrative ends on stocks.
Indeed a small disfunction could lead to a
Major break down. One should pay attention to little facts so as for profitable results
What are these things though?
Investors keep complaining about negative ends on trades, well it’s no magic, skill and experience has a major role to play in making positive ends investing
I’ve been working with a pro with over a decades knowledge in the market, his method has guaranteed profitable ends for me investing
Would there be means to get to this pro of yours?
Just watched two of your videos this morning, and I must say they are extremely informative. I’ve rewatched other videos on UA-cam and I’ll definitely watch more of yours - you have an excellent means of getting to the point with your communication skills. That’s not to discount any other info provider here. I recommend any newbie like me seek info everywhere as our ability to take in info may be limited and we all progress differently. We also connect differently with others.
Thank you for supplying your knowledge and sharing with the community. I’m looking forward to the next video.
Thanks a lot!
200 MA are often used by big institutions. This is what i learned as a broker for a year
Why’d you stop. I’m interested in becoming a stock broker
@@drek273 Change of scenery + stressful + I was able to pocket huge commission back then at 30 years old.
@@aldwinflores7029 so what do you do now??
@@blackforest1132 academe + trading appraised NBA cards / flipping it on secondary market.
i will try 200MA, thanks
Am delighted to listen to your teaching.
The success of moving average crossover system is dependent on selecting the right periodicity, the longer the MA, the less the noise and the fewer the number of whipsaws. In return for that benefit, your trade execution will be late in, late out. If you shorten the MA, you'll have more timely entry and exits but you will incur a lot more whipsaws. The only way to know which MA works best is hindsight.
Use Elliottwave, moving average is a waste of time. Can't create an edge by using what everybody is using.
Has anyone made a living swing trading or day trading at home?
@@filizecer2759 Profitable trading principles are the same for both day traders and swing traders, what changes is the time frame they operate on and the different psychology that is required. There is no right or wrong way to trade, there are profitable traders on all time frames. You can reach out to shannemoody via telegram for simple day trading strategy and find it profitable.
LOL. There is a reason why it is called "Elliot Wace THEORY."
You explained what I was feeling everyday while trading...thanks
Use 20 and 200MA + Break of trend strategy + Divergence + in 1M to 15M timeframe. Go for 2:1 to 3:1 ratio depends on your currency behavior. Make your backtesting first and see for yourself if works. Cheer$$$!
Dear Sir. Can you please advise any video in light of your comment. Please thanks.
No.
As a beginner these are by far the best and simplest explanations Ive seen on UA-cam.
Thanks a lot!
I learned something new today, I didn't even know we could use the moving averages for support and resistance. Still new to trading 3months in.
Hoping things are working out well for you! Keep on learning! Cheers.
Very informative video. Many other youtubers just simply show the few charts where SMA crossovers work perfectly, but don't show the caveats of it. Thanks for this!
Glad it was helpful!
Another great teacher. Very detailed, i appreciate your efforts. Thank you
I just use it as an entry point for my ea...but I don’t use them to confirm or deny a situation...they are just easy to get a point to get in the trade
I'm happy for this kind of videos, because there are so many little things we skip in the process of trading. Sometimes as a beginner who wouldn't even know where the problem is coming from.
The video is really nice, true talk.
It is no joke that beginners need guidance, because there are a lot of things which you might not know on your own until someone tell you. If not for Mr. William Beckford maybe I wouldn't have been a successful trader.
It is good to ask for assistance no doubt especially as a beginner. You might not get to know so much on your own unless you are guided.
@@davidblundell7057 This Mr. William Beckford, I have seen some other recommendations about him, he really must be good for people to always talk about him.
Mr Beckford is not just good, you should classify him with words like best. He has been my account manager for months now and trust me i haven't seen someone as reliable and productive as Mr William Beckford.
good indicator to use with emas is the adx since it shows the strength of the market and also when its ranging :) so you can be a bit more accurate
love this guy, quality knowledge
Thanks a lot!
I guess one unique feature about trades with robert is the early closure feature with which he uses to secure trades during unforseen market crashes or volatile movement of signal
Trading has been so life changing for me.Thanks to a MR ROBERT who has offered me a great way of making money.
mr roberts is the best trader ever i recommend him
u can reach him via email [roberthary6 @gmail. com]
Solid channel. Thanks for your work and time spent. One of the two or three such channels on youtube out of thousands.
Wow, thanks!
You are the best! Thanks for another great video - please keep up the awesome work!
Thanks a lot!
Спасибо! Ничего не понял, но очень интересно!
Thank you for this vídeo.
Brief and clear, thanks.
i always watch your videos learned a lot
A big thank you for uploading a genuine video about EMA crossover and problems pertaining to it. I have seen lot of videos regarding ema crossover but no one talks about problem associated with it. I liked about taking BUY calls and trading with fundamentally good stocks, keep patience to form a crossover and then trade. I have lost lot of money using such crossover. But ur video will help me a lot in future to avoid taking short trade. Big fan of you and your knowledge.
Thanks a lot for the kind words!
You didn't lose money because you used a poor entry/exit strategy. You lost it because you didn't put a money management strategy in place first.
Wonderful video!
Keep up the good work!
Thanks alot for the knowledge!
Thanks mate!
You are great of all the trading videos I see yours are the best keep it up and keep making videos
Thank you!
I didn't realise it, but I really needed this video. I'll report back in a month and see how Ive adjusted.
How are you doing 2 weeks in?
I would like to see your feed back
Great channel so far i like the way you going through the details
I appreciate that!
Thanks for the explanation
I love all your videos great job keep up men
Thanks for your honest experience bro
It's impressive to watch your videos The Secret Mindset
Good video. I trade options on a 3 minute chart using candlesticks (price action) and candle patterns but I use a couple of EMA's for support/resistance. Mainly the 34 EMA. I look for price breaking the 34 EMA near a pivot or fib retracement. MA's are lagging and on lower timeframes by the time you get a cross in most cases the move is over. Learn to read candlesticks. I learned from Steve Nison. My favorite setup is a reversal or bounce play off of support.
That's a very good approach. Kudos for using pivots and retracements.
Have you ever used the alligator on lower time frames to back up holding a trade for longer?
aaah i can relate it, how difficult to use MA strategy.
Another excellent video...exactly i have experienced that lead me to losses, which is clearly highlighted here but misinterpreted by others..
Thanks a lot!
Great info👍🏾👍🏾
Thank you for some common sense trading data. It is appreciated!
Thanks a lot!
Can I use both rsi and ma?
Great Teacher Thanks
That's one of my rules. I stay in a trade as long as it remains ABOVE the 9ma for a CALL or BELOW the 9ma for a PUT. I do not use crossovers as they are a poor strategy for entry & exits.
Thank you so much for this video. Liked and subbed.
Welcome!
use MA and add volume to the formular to make it less lagging then use statistic to predict the movement before it happens with these MA + Volume triggers and filter out the false triggers ..
that will give you a much better MA
you need to tweek the formular and add optimizing parameters that can be calculated during the movement of the market . these parameters you can feed to a AI and let it predict the parameters for the near future !!!!
look close ad BB and MACD add these also to you inducator ..
also if a automated system can generate profit over 20 year you system probably will work
you mean the volume at the crossover point would be alot higher than usual?
When trading on a short term basis, wouldn’t it be more helpful to just look at the EMA? I’m just now starting to learn about technical analysis indicators but from my understanding EMA tracks price change at a faster rate than a regular moving average which is why I figured I’d ask.
Thank You!
Thanks!
nice video ,thanks
I'M FROM BRAZIL. Congratulations on your excellent work ...
Thank you!
A simple back test can save you lots of money. Just take your preferred market, back test using the crossover strategy, and you will see whether it works or not. There are many software programs out there that facilitate back testing, or if you are a skilled programmer you can write your own. What you will find is that the moving averages act like support and resistance lines. The same sorts of ideas that apply to other areas of value (say from price structure), also apply to the moving averages. The reason why crossover strategies often fail is because the EMA is a lagging indicator. By the time the crossover happens, the move may be over because, recall, the EMA is a kind of resistance, and often the price will fall right back under resistance (false break).
Very nice short and simple, easy to comprehend! Unlike others took 1 hr to explain geez hahaha
Thank you!
Love this channel. All the videos are too good.
Now add a ma line of 99 as well for the longer period of time, when you get the crossover with all three offer certain patterns in the candles it’s a lot more then 10-15% accurate, added to another strategy MA lines work very well
Great information! This guy really know what he’s talking about in this video and usually im extremely sceptical so that coming from me should say something!
Trading MA crossovers on small timeframes will blow up your account in no time
Thank you!
This channel is good... Keep your spirit to make another good video 💪
Thanks a lot!
How to start learning about the stock market and intra day trading from scratch ? Any video series or book ??
The perfect study...
Thanks a lot!
Thank you
Thanks for sharing truth with us.
Unreal content as usual
Thanks a lot!
Nice thanks for sharing!
Thanks for watching!
Great vid. Subscribed
Thank you!
I have found that the ONLY way to use MA on small time scales is on high volume/volatility markets. Check out EMAs as they move quickly.
Hi I'm new to your channel and find it very informative for forex trading and I've just subscribed to your channel. With this ma method is it suitable with 1h chart?
Thanks sir
5/13 ema cross on daily is gr8 w/ setup (Fib cluster, OB/OS ect) , 8(ema)/20(sma) gr8 cross for support/resistance. (When price moves violently on ANY timeframe and doesn't fill that cross, it WILL. can be 5 bars, 20 bars, 100 bars or 1000 (although it usually does it fairly soon) , it will always come test that "naked" cross. 8/34 ema cross is a real good generic, general "trigger" cross on any timeframe. Best on 30 min for swing and 5/15m for day trade, 1/3m for scalp ect. MA crosses+Fib clusters = real good beginner strategy. Look up Carolyn Baroden for about as good a Fibonacci beginner tutorial as you will find. Shes known as the Fibonacci Queen afterall.
I liked and and subscribed and you deserve it thank you 🙏 for your help God bless you than you
Thanks a lot!
thank you
You r right....in intraday crossover mostly failed....tried 2 years never get big profite....always stuck in trading range
But who needs 100 pips.. Get your 15 or 20 pips after the cross over and move on to the next trade.. 3 trades taken daily with a target of 10 to 20 pips each.. Is 30 to 60 pips.. And at 0.20.. That's 60 to 120 usd per day.. Cherry pick your set ups.. Get your 20 pips.. Ans get out.. :-)
@Don Luna you can be getting your 30 pips per trade when your trading a well built up account.. Baby steps.. Go from making 50 bucks a day to a few hundred to a few thousand. It takes time but patience and studying and picking good trades in the end pays out.. :-)
yes this strategy was working when the stocks that I was trading were trending. to apply crossover safely requires to identify a strong trend.
Really this is a wonderful video. I have not seen so explained moving average strategy in my life. really your are great. I salute.
All the best
Hey! Could you please make a video about how to trade Fibonacci retracements and extensions? I have doubts ok the confirmation, when Is the correct moment. Thanks!
Added on my list.
Great video! What MA strategy do you recommend that works for Bitcoin?
Amazing 😍
on 200 and 5 on eurusd moving av what stop loss what take profit?
Ecxactly that i am using, EMA + Trend+support demand+ Fibonaci, i like it, i used lost money in low frames M15 and i agree with you
I trade full time now and use the moving average crossover on the 5 minute timeframe as one of my day trading strategies. Firstly I only trade with the trend, so I make sure if I'm selling for example that the price is below the 200 hull moving average, once confirming it's a downtrend I will only do sell crossover trades. Secondly I only use hull moving averages due to there lower price lag and have 2 of them on my chart. The first one is a 8 HMA, the second is the 50 HMA. Lastly I place the trade before the HMAs actually cross eachother, I wait for a pull back first with 2 to 3 good sized wicked candles then a confirmation candle heading in the trends direction. That's when I place the trade, and it has been very successful so far. This only works in trending market, it does not work at all in a ranging markets. Hope this helps someone. ✌
Nice and simple Stay Safe and Thanks
I typically use moving average crossover just to help me identify the current trend. I never use it for an entry though.
What do use for entry then?
@@akimukasanga6800 candlesticks ?
@@akimukasanga6800 Candlesticks patterns with volumes bro !
Excellent content and explanation 👍🏼
Much appreciated!
Excellent bro
Thank you!
8 ema 13 ema & 21ema for the lower timeframes
Ivan Katungi how to use this strategy?
@@lionfpv9016 sell when it touch 21 buy 13 touches
@@asishankam6552 That's not how it works lol.
Please explain how it works. Thanks a lot
On the higher time frame for example the 1 hour. you use the 21 EMA and the 8 EMA for confirmation on where the market is going (up or down)
On the lower time frame you use 8 EMA 13 EMA and the 21 EMA, remember the 21 is only to remind where the market is going. you use the 8 and the 13 to confirm your entry you wait for the for the candlesticks to pull back into those two EMAs then to confirm it a bit more you need an entry candle for example engulfing pattern
They work the best on higher time frame. I use 4 confluences with my moving average. Never trade moving average on its own. Will blow your account empty
Yupp, good advice 👍
By higher time frame you mean 1 hour or 4 hour because after that D charts can't be traded by moving averages.
SO WHAT IS THE BEST MA FOR SHORT TF?
Good analysis
So true, I lost a lot of money using crossover signals. But I don't have patience to wait on the D1 chart :P
Give it a try :)
@@TheSecretMindset Pls do reply to this ... i will wait for your expert and experienced guidance ... i just looked up the 1D chart. there has been no crossover since 14 FEBRUARY !! it has been bullish since then ...so there is no action to be taken while the price movement is happening every day .... pls guide
Thanx Sir....
what if you add few indicators like Williams dmi and rsi? It will give you much better results for support and resistance areas for short term time frame Also do it only when all indicators shows same direction
you are grate sir
Thank you!
great strategy
Thanks a lot!
Very nice...
Thanks a lot!
I had 3/4 trades work from crossovers on lower time frames today, but I’m still new so maybe beginners luck. This was on forex
I tried simulation and real trading on crossovers today and managed to lose out on most.
I'm about to start the video, but saying thank you first. I know it will be great :)
So excited!!
Thanks, Elaine!
@@TheSecretMindset As always it was truthful,informative and easy to understand. Thanks for your time ❤
Awesome....
Thanks a lot!
Hello Sir ! Happy New Year ! I have been told that best entries are when moving averages of atleast 3 charts are aligned ! For example Price is trading above MA on 1H,15Mins & 5Mins then it's a good opportunity to Buy & Vice Versa for Bearish
👍
20 & 100 MA + HH HL / LH LL SEEMS GOOD ON 3MIN & 5MIN CHARTS... KINDLY INFO ME IF I AM WRONG
I tried to use crossover between fibonachi 233MA and fibonachi 4181MA on 1min timeframe. It works. Then I found his equivalent on higher timframes. Now I use crossover between 8MA and 233MA on timframes between 1h and 1d charts. So, it's not important on each timframe you use MA crossovers, More important is, which MA you use on each timframe. On lower timframes you need to use very long MA to minimise voliatility, on higher timframes you need to use lower MA to reach more quikly. My conclusion is:"Test which MA work on each timframe and then trade." Now I use Crossover between 8MA and 233MA/EMA for entry point and crossover between 8MA and 233HMA/TEMA for exit plan on timframes between 1h and 1dailly. It took me 6 months of trading to find this strategy. Now I finally have good strategy I need.
help me bro
@@subramanikrishnan9921 , play with very long MA on 1min chart, then find equivalent on higher timemframe and use RSI for help or stochrastic oscilator.
This is the genuine one strategy with high patience to eliminate many noise from market on short term and medium term false strategies attached with trader.
👍
how about (intra day) 8sma + 50sma + 20ema as entrance point , when the candles are above 8 sma + 50 sma its almost a sure thing looking at many charts , also if its is above 20 ema and above 8 \ 50 sma use it along with RSI & macD ? macD in 5 minute candles is always first to show the entrance point , you can then wait to see the sma and ema are joining the ride and decide . this seems like a good indicator to get in to long positions at an up trend , take profit set up front (30-50 points) and get out , put stop loss at a reasonable point and don't break your stop loss or move it down
Good point taking only buy entries. But what fundamentals are most important? Maybe you could make a video about that! Great video
Thank Ryan. Will do that, planning some videos about fundamental analysis.
Very informative video. !!👍
you're the best tutor on youtube
👍 Appreciate it!
appreciate..... pls continue with 100% sincere
👍 Always