Revolutions of 4 Top Secrets why Moving Averages Crossing are not safe for trading

Hypothesis that most traders use:

MA 100, MA 20, MA36 using charting less or equal 4 hours.
When MA20 crosses below MA36, traders sell and stop loss is above MA100
When MA20 crosses above MA36, traders buy and stop loss is below MA100

ForexSurvivor.com signals use no moving average crossing for the below reasons:

• When the market is in consolidation phase, the 3 moving average turn to be one line. Traders can’t trade. The market consolidates most of its time, and consolidation is painful for those moving averages. Such phase may exist for 3 days and time is running.

• Does any one know when the market trends? Indicators show you that the market is trending today, by letting MA20 crosses below MA36, where traders go short and stop loss above MA100, where suddenly ‘fundamental’ news reverse the market, and the next day you would observe that you need to reverse your trade. You go long, and what happen next? The market consolidates, thus step i. covers the topic again. Momentum lost and you close the trade in loss or breakeven because there is no follow through.
  
• Moving average crossing once show a short or long signal, traders enter the market and set an unmovable stop loss. How many times that market hunts that stop loss and then return to its previous course? Market needs looser to survive and the more stop losses traders set the healthier the market becomes, & the quicker the trading account fades. Forexsurvivor use no stop losses in its SIGNAL daily trades, but rather survive its entry level by adding to its positions, based on concrete analysis that have nothing to do with any sort of indicators.


• And now let us suppose your crossing MA are at their best working, so where those fundamentals analysis go? Does ECB, BOE, BOC, or BOJ think of those MA crosses? So, since traders are not translating fundamentals onto moving averages, that alone means that moving average is in need of further improvements. And since ForexSurvivor.com knows that those crosses drag traders onto losses trades, it has established a RECOMMENDATION site for those BAD trades to help them survive their trades to a minimum loss without being emotional affected to their trades.

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Anthony Samaha
Trading Engineer
www.forexsurvivor.com