So I have been using the 8SMA with the 20EMA inorder to get my trend direction.
The 8/20 has been very helpful in the past as it seems to only slightly lag behind the trend while not being too sensitive to give constant trend change signals. However in the past few months my understanding of S&R levels has dramatically improved and there have been more than a few occasions where I have wanted to stay with the prevailing trend but have obeyed my rules to stay with trend and listened to my indicator (8/20) to only be shut out of a nice move... This most often occurs after a solid trend consolidates in a rectangle and the MA's lose there predictive powers.
I am starting to consider now removing the 8SMA and truly trading/playing in an Al Brooks template. But this is something I'm going to have to think about.
- Up = 8SMA crosses up and over 20EMA
- Down = 8SMA crosses down and under 20EMA
- The issue occurs after a solid trend consolidates in a rectangle and the MA's lose there predictive powers and start to chop a little, when this happens my signals don't keep me with prevailing trend.
The 8/20 has been very helpful in the past as it seems to only slightly lag behind the trend while not being too sensitive to give constant trend change signals. However in the past few months my understanding of S&R levels has dramatically improved and there have been more than a few occasions where I have wanted to stay with the prevailing trend but have obeyed my rules to stay with trend and listened to my indicator (8/20) to only be shut out of a nice move... This most often occurs after a solid trend consolidates in a rectangle and the MA's lose there predictive powers.
I am starting to consider now removing the 8SMA and truly trading/playing in an Al Brooks template. But this is something I'm going to have to think about.
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