Trend traders! Need some thoughts about this EMA "crossover"

Bordux

Recruit
Messages
45
Hello. As you can see in the screenshot below, the 12 period and 26 EMA lines touch each other and bounce off, creating something similar to EMA crossover signal which points in direction of the trend. What are your thoughts about this, how do you interpret and would you pull a trigger on it?

wot.jpg
 

Pharaoh

Colonel
Messages
19,783
Trading on an expansion of compressed MAs instead of a crossover can be a valid system. Guppy MMA trading works on this principle.

As for a specific pair or group of MAs, that will need to be tweaked and tested to find the right combination for your selected pair and timeframe.
 

AmanK

Recruit
Messages
8
Hello. As you can see in the screenshot below, the 12 period and 26 EMA lines touch each other and bounce off, creating something similar to EMA crossover signal which points in direction of the trend. What are your thoughts about this, how do you interpret and would you pull a trigger on it?

View attachment 20265
hello, In your chart the two lines, EMA 26 and EMA 12 are showing a strong bullish signal at the point you have mentioned as it was about to make a crossover but it touched and bounced back predicting a strong buying at that price. However if EMA 12 would have breached EMA 26 it would be a sign of bearish trend but bulls seem to pick up a good pace. They prove to be so strong that it didn't allow bears to move ahead them. Also EMA 26 subtracted by EMA 12 is represented as MACD line. You can interpret the same using MACD indicator.
 

Spellkiller

Private, 1st Class
Messages
56
In my opinion, it looks promising, but I would still look at the situation in other indicators. Still, all data should be double-checked in order to act in the market as accurately as possible. Usually, three indicators are enough for checking.
 

Granigamand

Private
Messages
23
It looks like an entry point.
Although, yes, I would agree with my colleagues that this is worth checking again.
Although if you're acting in small amounts, I'd take a risk to check my guess, sometimes the risk is justified.
 
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