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The main contract of the Container Shipping Index (European line) rose by more than 5.00% during the day and is now at 1564.1 points.The main contract of the Container Shipping Index (European Line) expanded its intraday gain to 4.00% and is now trading at 1547.6 points.May 14th news, photomask (plate) is a mold required for the production of integrated circuits. It is a structure used for selective exposure of photoresist coatings. Its principle is similar to using negative film to copy images onto photos when developing photos. South Korean technology media The Elec reported today that Samsung Electronics is planning to outsource the production of photomasks required for memory chip manufacturing. It is said that Samsung has started the supplier evaluation process. Candidate companies include Tekscend Photomask, a subsidiary of Japans Toppan Holdings, and PKL, a subsidiary of the United States Photronics. The evaluation results are expected to be announced in the third quarter.On May 14, Morgan Stanley said that JD.com (JD.O) raised its revenue and earnings growth expectations for the group and retail business (JDR) to double digits in 2025, which is good for the stock price; but the takeaway business did not provide loss guidance, which may lead to further downward adjustment of earnings expectations for the rest of 2025. Analysts Eddy Wang and others said in the report that JD.coms total revenue is expected to increase by 13% year-on-year in 2025. The bank lowered its earnings forecasts for JD.com in 2025, 2026 and 2027 by 14%, 7% and 5% respectively to reflect the investment in the takeaway business. Maintain the "Equal Weight" rating and lower the target price of American depositary receipts to US$39.Futures news on May 14, oil prices continued to rise, operating confidence of fuel oil market players improved, refineries maintained shipment prices, downstream processing profits were low, enthusiasm for purchasing high-priced resources was not good, the market was dominated by supply and demand, and todays market is expected to have a slight increase at a low level, and will mostly stabilize after falling from a high level.

How to Enhance Your Moving Average Crossover Strategy

Aria Thomas

Mar 25, 2022 09:33

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Moving Average Crossover

The moving average crossover strategy is designed to locate the middle of a trend. A trend is defined as price movement in which prices move in a certain direction over time. In general, trends are either upward or downward, while sideways movements are considered consolidation rather than trends. Capital markets trade in tight consolidative patterns around 70% of the time and trend just 30% of the time. With this in mind, it is critical to be able to recognize a trend and capitalize on it as soon as it becomes apparent.

What Is the Best Way to Capture a Trend?

Short-term moving averages may capture short-term patterns. A moving average is the average of a specified time, and when a new data point is added, the first period of the average is discarded. A moving average crossover strategy looks for instances when a short term moving average crosses above or below a longer term moving average to create a short term trend.


For example, if the 5-day moving average of USD/JPY prices crosses above the 20-day moving average of USD/JPY prices, a short term trend may be in place. One trading strategy may be to buy USD/JPY prices when the moving averages cross over, hoping to ride an upswing in the currency pair. An investor may try to capture up, down, and sideways movement by combining a short, medium, and long term moving average.


Longer moving averages are used to capture longer-term patterns in a financial market. When the 20-day moving average of gold prices crosses below the 50-day moving average, as seen in the gold chart, a medium term trend is deemed to be in place.

Problems with a Standard Moving Average Crossover

The notion of a moving average crossover is appealing, but a basic issue is that while the market is consolidating, a moving average crossover will provide a lot of false signals. Between April 2014 and April 2015, the 5 / 20 moving average crossover provided 5-signals that did not forecast a trend. This does not imply you would not have earned money trading this strategy, but you would not have seen a big upward (or negative) bias in the currency pair.


One method to improve a moving average crossover strategy is to include extra research that will sift out some of the misleading signals. For example, by adding a Bollinger band (developed by John Bollinger - this research helps form a histogram of prices above and below a mean level) to the 5 /20 crossover strategy, you can also assist in defining a range.


In the instance of the USD/JPY, you could only buy the currency pair when the 5-day moving average crossed the 20-day moving average and the exchange rate crossed above the Bollinger band high (2 standard deviations above the 20-day moving average) during an x-day period. The number of days (x) is subjective, although a duration of fewer than three days is desirable. By adding another layer, the strategy becomes more resilient, but also less common.