Does anyone use a 2 moving average trading system?

[daniel33]

You must recognize if the market is reversing, ranging or trending when using moving averages because this makes all the difference in how they should be utilized.

The vast majority of traders treat them like one size fits all kind of tool which is why they consider them worthless or useless, which is obviously a product of ignorance.

 

[murray t turtle]

Quote from daniel33:

You must recognize if the market is reversing, ranging or trending when using moving averages because this makes all the difference in how they should be utilized.

The vast majority of traders treat them like one size fits all kind of tool which is why they consider them worthless or useless, which is obviously a product of ignorance.

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Good points;
i name them [1] UP-TREND,
[2]SIDEWAYS-SLOP-Chop TREND,,[my least favorite trend, AKA range]
[3]DOWN-TREND.

50 dma, 50 period ma/1 year chart;
200dma, 200 period ma/1 year chart, =quite helpful
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[daniel33]

Quote from viktor_k67:

This is macd and simple MA crossovers do not work for the most of stocks over longer period of time. See below MACD scan results for different stocks

MACD

The main reason of failure of simple use of MAs is that market changes and we have periods of different volatility. If you start monitoring volatility and adjust your MACD or MAs setting to volatility then you may take something out of it. For comparison see Volatility adjusted MACD scan results below:

V-MACD

You cannot advertise for free in this site, and considering most of the explanations in the link are signed VK, I believe you breaking the rules of the site.

 

[cdcaveman]

Quote from daniel33:

You cannot advertise for free in this site, and considering most of the explanations in the link are signed VK, I believe you breaking the rules of the site.

good catch.. haha..

 

[nkhoi]

Quote from kut2k2:

So what's the modification? Are we expected to guess? Use telepathy?

...

go to indi setting, set displacement = 1

 

[cornix]

MA's smooth the price and show average direction. Had to say this obvious banal information, because it makes one ask the correct questions: do we need smoothed price action/average direction of the price? Yes, it can be useful.

As for the particular settings, that's of secondary importance and depends on what is your analysis time horizon.

 

[kut2k2]

Quote from nkhoi:

go to indi setting, set displacement = 1

Thanks.

 

[TheMagican]

Quote from austinp:

they don't work. what you see in hindsight looking backwards on a chart is NOT what you see unfolding in real-time when it matters.

moving-average crossovers are a siren song... don't work. lag trend session moves and chop to pieces during sideways periods of price consolidation

learning to read = measure price action itself is the only path to success.

So,what works,according to you?

 

[BobbiDigital]

Quote from cornix:

MA's smooth the price and show average direction. Had to say this obvious banal information, because it makes one ask the correct questions: do we need smoothed price action/average direction of the price? Yes, it can be useful.

As for the particular settings, that's of secondary importance and depends on what is your analysis time horizon.

Cornix,

You don't think the MA needs to start from a specific point on a chart, such as a bottom bar (beginning of potential trend) OR specific avg. duration of bottom to bottom bar if you are measuring PA? Otherwise the data can become arbitrary? Thanks.

BD

 

[cornix]

Quote from BobbiDigital:

Cornix,

You don't think the MA needs to start from a specific point on a chart, such as a bottom bar (beginning of potential trend) OR specific avg. duration of bottom to bottom bar if you are measuring PA? Otherwise the data can become arbitrary? Thanks.

BD

BD,

I don't think so, because the purpose of MA is smooth momentum/price action over a certain number of periods. Simple MA just returns average of X periods, EMA does the same but with more weight to last periods.

So for me, EMA serves my purposes pretty well, it shows overall direction of the latest price action. And that's exactly what I want to know after a quick glance. Whatever happened before X periods is of lesser importance, because I am interested in the nearest future only (few next 5-min bars most of the time).