Try Keystone’s Custom Filters for this and 22 other strategies.
The MovAvg 3 Line Cross is a highly disciplined trend-following strategy that requires three different timeframes to align before a trade is taken.
How Logic Works
It uses Fast, Medium, and Slow Moving Averages to confirm “stacking” momentum.
- Long Entry: Triggered when the Fast MA crosses above the Medium MA, provided that both are already above the Slow MA.
- Short Entry: Triggered when the Fast MA crosses below the Medium MA, provided that both are already below the Slow MA.
- The Goal: To ensure the trade is taken in the direction of a well-established, multi-layered trend.
Key Customizable Inputs
- FastLen / MedLen / SlowLen: Typically set in a sequence like 4, 9, and 18.
Strategic Considerations
- Maximum Filtering: This is one of the most conservative trend strategies. It often misses the very beginning of a move but ensures you are entering when the trend has maximum “weight” behind it.
Stacking: A “perfect” trend is seen when the three lines are perfectly fanned out and not touching.
