Anyone use moving average indicators?

[Xela]

though moving average are great for dynamic support and resistance, I use them to know the major direction of the price and also to find entry points.

 

[tomorton]

though moving average are great for dynamic support and resistance, I use them to know the major direction of the price and also to find entry points.

Not really. I find they're great for past direction, good (but not essential) for future direction, poor as support/resistance and very poor as entry points. Actually I ignore all candidates for resistance in an uptrend and for support in a downtrend.

 

[Saltynuts]

Undoubtedly, huge numbers of people!





All but one of the genuinely independent, objective research studies I've seen reported on this subject said that they don't, overall, if their crossovers are used as trade entries and/or exits. (And that other one, that suggested otherwise, was very "iffy" indeed, IMO.)

All the traders I know who look at moving averages at all (and that's quite a few, especially if you define it loosely enough to include "other, directly-MA-derived indicators" as well) are using them towards informing their broad, directional bias, rather than as trade entries, per se.

I'm referring here - in very simple terms - to the huge difference between "enter a long trade when the fast MA crosses up above the slow MA" and "try to identify potential long entries from the price action and/or whatever else after the fast MA has crossed up above the slow MA".

Just my perspective ... (with which many, doubtless, will disagree: it was ever thus!).

Thanks Xela.

 

[Saltynuts]

Food for thought. Enjoy!
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_averages

https://www.investopedia.com/articles/active-trading/052014/how-use-moving-average-buy-stocks.asp

Thanks! Reviewing now. Not seeing much back-testing results in those articles off hand.

 

[Saltynuts]

Who said using moving averages and buy-and-hold are mutually exclusive?

I use moving averages but not for defining directional bias or determining entry and exit points.

Care to share more on how you use them lovethetrade?

 

[Turveyd]

Not really. I find they're great for past direction, good (but not essential) for future direction, poor as support/resistance and very poor as entry points. Actually I ignore all candidates for resistance in an uptrend and for support in a downtrend.

Correct, Trend trumps S/R, this way you don't take profit to soon, let the trend run.

Use for entries with Trend only, and then have a 2nd entry / possible reversal point or even 3rd.

 

[SunTrader]

I always ignore them as dynamic support/resistance lines.

My suggestion, just ignore them completely.

Or to just have as a heads-up on what they crowd watches.

There are far better TA way's to determine "time to go".

 

[Peter10]

Not really. I find they're great for past direction, good (but not essential) for future direction, poor as support/resistance and very poor as entry points. Actually I ignore all candidates for resistance in an uptrend and for support in a downtrend.

i think it depends on how well you understand the use of the indicator. As for me, I have a profitable trading strategy using moving average indicators only.

 

[tomorton]

i think it depends on how well you understand the use of the indicator. As for me, I have a profitable trading strategy using moving average indicators only.

MA's are the only indicators I use, and my trading strategy is profitable. This might be due to my understanding the use of the indicator pretty well.

 

[Saltynuts]

Yeah I tried for years to just use SMA's/EMA's. Stock D1 trading 9sma/21ema/50sma/200sma works great, day trading DAX/FX fails sadly.

Day trading, 18sma + Envelope 18sma 0.04% and 9sma + BB 9 2.2 has been kicking ass.

Bollinger bands are the way to go mostly.

And don't think of SMA's as lagging, think of as current recent past direction was UP for instance ( 18sma ) so take longs where the BB 9 suggest reasonable pull backs or what ever shorter term logic you want to use.

Turkeyd, thanks. A few questions for you. "Stock D1 trading" - what does the D1 connotate? Is this for individual stock or indexes? When you say the 9sma/21ema/50sma/200sma works great, how do you use them?

"Day trading, 18sma + Envelope 18sma 0.04% and 9sma + BB 9 2.2 has been kicking ass."

What does the evelope 18sma 0.4% and 9sma + BB 9 2.2 mean? How do you combine these different indicators to use?

Thanks!