5/20 MA Rule

[Jan]

First posting for me on here so hello to all! Probably a silly question but im just starting!

I am just new to TA having always been a fundamentals man. I have been checking out different methods for spotting possible risers. I have seen that the 5/20 MA crossover looks like a good sign and also the 50/20 Crossover.

However, can anybody tell me what is a good indicator to confirm a possible price increase after a crossover? I have looked at MACD and it looks good too but is there any other indicators that anybody could advise me to look at?

Many Thanks in advance.

 

[thepoliteone]

If you are new to TA then welcome to the world of a million indicators! If you want some examples of different indicator-based systems then have a look at www.forex-tsd.com as an example, but people will always quibble over what indicators are 'best', it's more a case of finding ones that suit your style/timeframe of trading. Also, remember the exit signal is as/more important than the entry...

 

[daytradingUK]

You might want to try ADX /DMI to confirm the market is trending and not just trading sideways. I sometimes use DMI crossover (the positive and negative lines of the ADX indicator will crossover, whichever is on top is the direction of the trade.

I hope this helps you in profitable trading, I like ADX but that is my personal pref.

 

[Jan]

You might want to try ADX /DMI to confirm the market is trending and not just trading sideways. I sometimes use DMI crossover (the positive and negative lines of the ADX indicator will crossover, whichever is on top is the direction of the trade.

I hope this helps you in profitable trading, I like ADX but that is my personal pref.

Thanks for the reply. Will check it out. I have found that sideways trading and 5/20 does not work! I have not seen the ADX/DMI before.

 

[daytradingUK]

Thanks for the reply. Will check it out. I have found that sideways trading and 5/20 does not work! I have not seen the ADX/DMI before.

ADX/DMI is just one, you could look at Aroon as an alternative.