The Ultimate Moving Average Crossover? (For the ES)
No matter how many times I explore new concepts, I tend to always incorporate a moving average, or two (if not on price, then on an oscillator). I am going to show the settings I have found to be most beneficial for finding the trend for the ES. First, I have to admit, it is not just a simple crossover. Instead, it is a combination of a MA cross, Multi-Time Frame (MTF), and direction of a normalized moving average.
The following are my settings:
- Indicator #1 (long term MA): 13 period, normalized Ahrens MA
- Indicator #2 (short term MA): 21 period Better EMA
- Multi-Time Frame: Both the long and short term MA are setup to be used on a UniRenko (Tick Trend = 2; Tick Reversal = 8; Tick Open Offset = 8)
The rules to define whether or not the market is trending is extremely simple and can be used on any chart that is as granular as the UniRenko (Tick Trend = 2; Tick Reversal = 8; Tick Open Offset = 8), which I prefer a 4 range, 6 range, 610 tick, or the UniRenko itself.
- The Ahrens MA must be colored red for a downtrend and green for an uptrend (Color Logic = RisingFalling)
- The Better EMA must be below the Ahrens MA for a downtrend and above for an uptrend
- When #1 and #2 are in alignment, I define the market as trending, when the two are out of alignment I define the market as in transition or “chop” mode