hi nonlinear,
It correspond to the peaks and valleys...thats true....but this is not all it shows. You can also see the direction of the move we can trade...especially on the higher TFs where peaks and valleys are not build that often (from a intraday traders perspective)...as long as the TMA is above or below the MA we can only trade in this direction...if two TFs go in the same direction enter your trade...it is simple and easy to understand...only directional bias..no levels...nonlinear wrote:Neo, I agree with you on values. My point was that your MA cross system appears to correspond to the peaks and valleys, so why not just use the peaks and valleys as entry points? Then you will avoid having to pick the right MA for each pair (and the lagging indicator on a lagging indicator issue). That said, a MA cross is much more mechanical than picking a peak, so there is benefit to that. Also, your MA cross system might work better with a TMAtrue that is NOT normalized for scaling purposes.
It is a little like the alignment of the pivots...only that this alignment occurs more often...
As of now I use the SMA21 on all pairs and it seems to be ok this way...I don't see that we need to have different MA's for different Pairs...why over complicate things?
And as you said the MA cross is more mechanical as picking a peak or valley...when do we consider a peak a peak (eg. if the level is over 0.6 or 0.9) or a valley a valley (if the level is below -0.6, -0.9).
I use the TMA only in True mode...everything else would be nonsense...
hope this helps to deepen the confusion..
happy trading,
NeoTrader
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