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TFC Commodity Trading Forum

Re: CORN, Time to go Long?/Gian

Actually, I think you and I had a conversation similar to this before. I decided to stay with the SMAs because I am doing more than the RC Allen cross over.

If I remember right (been a long time since I looked at this), he is using cross overs of the fast MAs and the mid to slow MAs to signal trend change. You see this in the TFC analysis all the time when you look at the charts.

Although I do look at the RC Allen style cross over, I also look at the cross over of the price bar itself and the SMAs as well.

In a Bear market, a correction that leads to a price bar opening under the 18 day SMA, and closing above it is also called a "Cross Over", even though no SMAs may have have actually crossed each other.

Here are a list of things I watch regards to moving averages.

1. RC Allen cross over (Learned from my Brokers show in stock market observer back in the day)
2. Price bar cross over (Learned from my Brokers show in stock market observer back in the day)
3. Spear Point trading, which is a sharp up turn in the SMA (usually the fast one) right under the price bar. Must be a 45 or steeper angle. Price bar must open on, or just above the spear point.
4. Convergence between the SMAs, and the bollinger bands set at 18,2
5. Divergence between SMA and Bollinger bands

When combined with the actions of the bollinger bands, I end up with 8 technical set ups that I watch for at all times. This method is layed on top of the naked price movement/pattern break out method everyone learns when they first start.

Considering I only use 2 indicators (sometimes I look at volume too, to help pick which contract to trade), the system is fairly sophisticated. My course only covered trading 101, and 2 of my set ups. I do have a revised edition that will have everything, plus supplemental chapters on stuff I have done, but are not part of my existing method, that is in the works. I don't know if I will ever do anything with it, considering the night mares I am currently having. The point is, I am looking at a lot of stuff besids the basic types of cross overs

I was playing around with the EMAs, and found that they are not calibrated to the way i trade. This is most likely because I developed all my set ups using the SMAs originally. I'd have to recalibrate to make EMAs work in the system. That would be a lot of time and work.