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Hello, traders.
And welcome to the NinjaTrader Indicator Warehouse.
So today we're going to talk about the moving average cross
indicator, which happens to be one of my favorites.
Now we've essentially combined a variety of moving averages.
We displayed them in pairs.
And we put some additional smoothing elements in place,
which makes this a simple to use and
extremely versatile indicator.
Now the reason we use moving average pairs is to better
understand current price now relative to the past.
So where is price today versus the past?
Are we above the moving average, below it, or are we
straddling it?
Is the market trending up?
Is it trending down?
Or are we in a sideways market?
Now, the answers to these questions will help you make
better trading decisions.
And we use moving average indicators because they help
us understand price and identify trend.
They help us make sense of the market, and help us decide
when to enter trade, hold a trade, or exit one.
And when we use moving average pairs, we're looking for
crossing situations like this, which
indicates a change in trend.
Now the moving average cross indicator was developed to
help traders visualize these situations.
And we offer 14 different moving average types.
You can set audio as well as visual alerts on crossing.
And you can even set zone alerts of an impending cross
when moving averages are nearing one another.
So let me show you how this works now.
So here we have two moving averages.
I've chosen a 50 period simple moving average and a 15 period
exponential moving average.
But as I mentioned, we have 14 different ones to choose from.
So whatever your particular trading style, you can
configure this indicator to fit your needs.
Now you can also configure color change, both on trend
change as well as crossing situations.
And you can also set visual and audio zone alerts of an
impending cross.
So you can define the total number of ticks that make up
your particular zone.
And finally, we offer alert pop-ups on your screen, or
email notifications if you're not at your desk.
Let's show the parameters box now.
I'm going to right click on my charts.
And now I'm going to left click on Indicators.
That will bring up my Parameters box here.
I'm going find my indicator.
Left click on that.
And then I'll move over to the Parameters box on the
right-hand side.
So here in this first area, we have our data type.
So I can calculate the bars on close, open, high, et cetera.
Here's our moving average type.
As I mentioned, we have 14 different
moving average types.
So depending upon what you prefer, you can pick and
choose from this list.
Now we also have moving average type 1 and 2,
typically your fast and slow.
You can also configure the periods.
And if you use these the zones, you can configure
whether you get alerts when those are penetrated inwards
and outwards.
So let's configure the zone size here.
This is simply a total number of ticks that
constitutes your zone size.
And if we scroll down, we can see that we
can set up some alerts.
So the first alert we can set up is our email notification.
So if you're not at your desk, you can get an
email sent to you.
You can also launch pop-ups on your screen.
And then you can set the max number of audio alerts here.
Now in this section, you can define if there is a cross
alert, if that's going to be generated, what sound is also
going to be generated with that.
And then you can also configure visual alerts.
So what color is the marker?
And then what type of marker are you going to use--
arrows, triangles, et cetera?
Now here, for the outward sound, this is exactly the
same as the inward.
The only difference is this is only applicable if you're
using the valid zone side.
So only if that value is greater than 0.
Again, here you can configure the audio alerts, and then
also the marker colors and types.
Now down here we have the plots.
So here's our fast moving average lines.
You can configure them different colors, and then
your slow moving average colors here.
You can also configure the type of line
as well as the thickness.
And then here at the bottom, you can also configure the
coloring basis.
Are you color changing on trend change, on crossing, or
no color change?
Here, separation.
And then you can also choose not to show the moving average
lines at all.
So if you're trying to clean up your charts a little, you
can set this to false.
And then that won't show the lines at all.
But it will still trigger the alerts.
So we remove the line color changes and set our
zone for one tick.
And we've left all other parameters the same.
Now I could have changed the moving averages to be a 20
period simple moving average and a five period simple
moving average.
Now here's an example of a zone being penetrated and an
alert firing off.
And I should note, this indicator is typically used in
combination with other primary or secondary single
indicators.
As we've seen, the moving average cross indicator is a
versatile tool that allows you to customize your settings to
fit your particular trading style, and is really a great
addition to any training tool kit.
And remember, whether you're day trading the E-mini S&P,
other futures contracts, or Forex, Indicator Warehouse
will help you get more profit from your online trading and
technical analysis efforts.
Thank you for joining us.