Originally Posted by
rookie001
This indicator that I am talking about in this thread is actually drawn from Fisher FX and fisher sniper strategy. A histogram with two moving averages crossing each other depicts the market fabulously ... what I have rehearsed over the years that almost all the crosses of moving averages work but then why many traders fail using these crosses ... the reason is very simple ... because they are using these crosses on their charts and using the lines' crossings.
In fact, the technology works differently ... crosses of moving averages involve many things ... for example, what is a specific moving average's role on a specifically timed chart ... how is it reacting to the price movement and all that .... decides what is actually a cross and what is not. Even when you see lines crossing ... they might not be ... because their data might still have distances between them.
In an instance of using cross of 3SMMA and 34SMA ... lines may cross on your chart at one point ... but if these two moving averages are depicted in histogram they might be farther away from their zero line ... if they are depicted in a zero level and a moving average ... means ... if we consider 34SMA to be a zero level and 3SMMA crossing it to and fro ... they might have not actually crossed.
I feel that there is everything in moving averages and whenever an indicator needs refinement it requires a moving averages filter or something like that. Now FX Fish and its histogram might work magnificently yet the addition of two moving averages define a lot of other things and make it almost a stand-alone indicator. However, it is advisable to use it on demo first ... I have included its history and the way it works and how moving averages crosses can be manipulated to best depict the charts ... only for the purpose of evaluating the indicator and how it works.
Only this is the way that a trader can put a tool to its best extent. Moving averages cross can be customized and even you can use different types of MAs from its input tabs. Let me know if I have left anything out ... look at the picture ... like every other tool out there ... this might have its shortcomings ... yet it is a fine tool and works with more than average accuracy ... which is an established and known fact.