Letters To S&C by Technical Analysis, Inc.
The Forex Focus article
in your May 2008 issue,
“Allied Currencies” by
Alexander Sabodin, discusses
moving average crossovers, but the author does not reveal
the numbers he is using for the
crossover. The article is very interesting.
Can you tell me what numbers he is
Alexander Sabodin replies:
I prefer to use moving averages based
on Fibonacci numbers. When it comes
to moving average crossovers, I avoid
using two adjacent Fibonacci numbers
as my parameters. So I won’t use, for
example, 5 and 8, but instead will use 5
and 13 as my parameters.
When it comes to analyzing the financial
markets, it’s more art than science,
as I have stressed in my articles. When
you use a moving average crossover
system, you can use any two parameters
based on what you view to be the best
choices based on historical performance.
You want to identify those with
the least number of false signals.