Strategy of the golden crossing of moving stockings
The Golden Cross is a trading technique based on the use of moving stockings in the most volatile hours of the negotiating session. It presents the best results during the sessions of London and new York. Mobile stock trading strategies in their simplest form work based on the crossing of two moving stockings. In which case a position is opened when the fastest average approaches and crosses the slower mean as shown in the following example:
There are multiple versions of using mobile socks as a strategy to generate market profits. Through this technique we will show how to maximize the profits and minimize the risk by using these indicators. The logic behind this technique is that during the hours of higher volatility the markets are at their optimal time as they move with the greatest strength according to the prevailing sentiment. During those hours we will use a simple strategy with 5 special mobile means to show clear crosses that are more reliable.
System rules
We use five exponential moving averages (EMA).
The periods of the EMA shall be as follows: 10, 20, 30 and the Fibonacci values 144 and 169.
The first entry occurs when the EMA 10 crosses the two slower EMA (144 and 169 periods). In this case, the direction of the position (long or short) is the same as the crossover of moving averages.
The second entry is the main operation. A position is opened after a correction of the price along with the crossover of the EMA of 20 and 30 periods on the slower EMA (144 and 169 periods).
The target price depends on the type of graph.
Example of the Golden Crossover system of moving stockings
The red lines are the moving averages of 10, 20 and 30 periods.
The turquoise lines are the moving stockings of 144 and 169 periods.
The red circles indicate the points where the junction of EMA 10 was first with the EMA 144 and 169 and then the crossing of the EMA 20 and 30 with the EMA 144 and 169.
Points to remember
Be patient.
But the crossroads do not enter the market.
The golden crossing occurs only when the EMA 10, 20 and 30 cross the EMA of 144 and 169 periods.
Use Stop Loss and Take Profit levels according to the time frame with which you are operating. Follow the plan with discipline.
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