mladen wrote: Sat Apr 03, 2021 11:20 pm
Price is the "nose"
Average is an attempt to make price "noiseless" (to asses something called "trend")
Using crossing of price (noise) to average (attempts to make price noiseless) just re-introduces the noise - ie: no use of it (at least that is my opinion) since then none of the job made by an average is valid any more
Just to please you, here is a screenshot (with all crosses - not all of them trigger trades, though):
"price is noise" - I think the screenshot shows that this is an overgeneralisation.
sometimes (ranges) price is random, i. e. noise (many consecutive signals)
sometimes price is less random because it is in a trending move (this is the ideal time to trade) (fewer signals because only after retracements)
the job an average offers: structuring the data in a way that sometimes makes it possible to visualize the directional bias of price.
If the directional bias is up - you want to take buy-trades (everything else is a countertrend trade and highly risky)
If the directional bias is down - you want to take sell-trades (everything else is a countertrend trade and highly risky)
While I clearly state at which point I want to enter (and why), you just say: don't use price (noise), trust the MA because that's what it is there for in the first place:
If I take your oversimplification seriously this logically leads to the conclusion: I can enter whenever I want as long as MA gives me either an up (buy) or down (sell) signal.
Is there a problem? Sometimes not, but at others there will be because - often - price is far away from the MA only to retrace once you entered, so price moves against you etc
Of course, you know all this....