forex buy signals
does cross over of two moving averages signal a buying opportunity in forex trading?
i have read an article which says that it is theoretically unsound position to buy (or sell) when there is a cross over. can math oriented person explain.
In general many technical analists consider a cross over as a strong buy signal. It indicates a strong reverse in trend.
The unsoundness concept comes from the idea of being whipsawed. Many times the price will crossover, but then reverse. Technical indicators are by no means perfect indicators. If they were we would all be millionares.
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