|
June 05, 2019, 09:56:54 PM |
|
Hello,
I'm trying out trading the crossover strategy on the hourly chart. I'm wandering - do you buy immediately the second the crossover of the moving averages takes place, or do you wait for the hour candle to close to 'confirm' the crossover first? Today, it was crossing over, then crossing back and 'undoing' the crossover .... all within the same candle. I've noticed this happens a lot.
When you look back in hindsight you can see: 'Well, the crossover didn't happen there, the moving averages were parallel and moving along side each-other but they didn't actually cross.' However during the formation of that hourly candle - it did crossover, then under, then over e.t.c.
So should you wait for a candle to close - printing the crossover? Only problem i can see with this; Is when a successful crossover takes place it often starts with a GIANT green candle, substantially increasing your risk should the crossover fail, and reducing profits too. But maybe that's worth it to avoid getting 'faked' or whipsawed in and out of the crossover...
What's the right way to do this? thanks. TG
|