Yes the whole point is MA indicator and like pretty much all of the technical analysis indicators all go out of the door in the face of sudden and extreme news/economic events even though they are effective in painting a general picture of where the price is going in absence of sudden information.
Anyone use moving average indicators?
- Thread starter Saltynuts
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Yes the whole point is MA indicator and like pretty much all of the technical analysis indicators all go out of the door in the face of sudden and extreme news/economic events even though they are effective in painting a general picture of where the price is going in absence of sudden information.
the complete details of my strategy can't be explained in a nutshell. but I use ema 100 spot the direction of the trend and find a good entry point.
great for trading instruments with good trend like gold, ES, cl. jpy/usd
%%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!).
WELL OK, dont know if all ma crossovers are useless; i tested so many, i quit, for something better.LOL And I dont consider it a big problem; but not all want to wait 200 days in the new year- that's about 7 months
Many people use moving averages in the currency market. Especially EMA14 and EMA50.
You could use EMAs for several things, for example you can open a position if price respects EMA14 in M15 after a move in the direction of the trend.
Best regards
Henrik Thorstensson
You could use EMAs for several things, for example you can open a position if price respects EMA14 in M15 after a move in the direction of the trend.
Best regards
Henrik Thorstensson
They're useful (not essential) as a yardstick in gauging one trend against another. So e.g. you can tally how many consecutive weekly bars have been unbroken by the 50EMA, how many consecutive weekly closes have been above the 50EMA, how many weekly H/L/C's have been above the 50EMA in the last x months, etc. etc. Using some parameters relevant to your strategy will allow you to rank or score trends on different charts, helping prioritise opportunities.
Indeed ... exactly so.
Hmmm, and that's the market with by far the highest proportion of losing retail traders, isn't it?
Hmmm, and that's the market with by far the highest proportion of losing retail traders, isn't it?
That doesn't mean that the EMAs are bad.
It doesn't prove it; but it certainly begs the question.
In practice, though, it's one of many (often indicator-based) aspects of retail forex-trading that explains why that's the market with by far the highest rate of losing retail traders, for the reasons explained here: my point is that those are also typically the traders most attracted to the apparent simplicity of indicators; they tend, collectively, to ascribe to them "predictive" attributes which objective research reliably demonstrates they simply don't have.
The reality is that, like so much else, it depends how they're used. Retail forex traders certainly tend, overall, to be the ones using them as a basis for entering trades (rather than for directional bias), and that's a mugs' game.