200-Moving average and ranging markets

• 10/25/2021 at 11:48 AM #180310
  gnellas77

  hi gentlemen,

  i m interested in riding long term trends using a 200 mov average. the problem of course occurs when the market is ranging and whipsaws the 200-mov. average.

  Can you suggest to me a couple of ways to overcome this problem (the ranging market which increases the expenses because of commissions)?

  thanx in advance.

  

  gnellas77

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  10/25/2021 at 12:30 PM #180316
  JS

  A well-known and annoying problem.

   

  What you can possibly do is sit a percentage above and below average and use “Crosses Over / Crosses Under”.

   

  You can also use a percentage of the standard deviation that you project above and below the average as is known from the Bollinger Bands.

   

  Another way is to have the breakthrough confirmed by another indicator.

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  gnellas77

  

  JS

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