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Title: 10/21 EMA 1hr/2hr crossovers Post by: chriswen on December 07, 2013, 12:06:17 AM So, anyone notice the 10/21 EMA crossovers on 1 hour and 2 hour time scales?
It seems like lots of people are using bots to trade on these crossovers. Another trader used to recommend it but now its totally overused. On crossovers volume just shoots up and with all the people doing market orders the price falls or rises a lot. And this is not really good for stability. While EMA strategy is valid and good too many people are using the same strategy. It's causing $100-200 drops which is really significant. Also, 100 dollar rises for an hour. So who's implementing EMA trading strategies? What do you think the effect of these bots are having on the stability? Is it bad? Title: Re: 10/21 EMA 1hr/2hr crossovers Post by: Zotia on December 07, 2013, 01:30:35 AM I think you may be confusing correlation with causation.
It looks like the large drop CAUSED the 10/21 EMA to cross. It's hard to tell which happened first. If you have evidence that the 10/21 EMA crossed before the sell off, I would like to know. Title: Re: 10/21 EMA 1hr/2hr crossovers Post by: chriswen on December 07, 2013, 03:27:55 AM I think you may be confusing correlation with causation. It looks like the large drop CAUSED the 10/21 EMA to cross. It's hard to tell which happened first. If you have evidence that the 10/21 EMA crossed before the sell off, I would like to know. True that's possible. It makes sense. If there's a big drop then the EMA will cross. |