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Using the open or close for EMA crossover trigger
Jimmy Fixin
posted Jan 31, 2020

Hi,

It is 1am Jan 31st 2020 (UTC) now, and the D1 daily candle just closed (about an hour ago) on BTCUSDT on Binance. If you opened this ticker up on any chart, you would say there was a 50/200 ema golden cross. The caveat being the cross occurred after the open (as opposed to on the prior close).

I have a basic ema crossover algo, which did NOT trigger after the daily close, as only closing prices are considered when calculating EMA's. So now, the trigger will not be fired until tomorrow.

My question is for the algo traders: Would you consider the cross valid today or is it only valid tomorrow after the close? Would it be bad practice to use the open prices when calculating EMA's?

Thanks,
JF

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