I have a question about moving averages and oscillators
- Thread starter triggertrader
- Start date
Oscillators and moving averages are there for one purpose to "help" those that lack the cojones to drop all indicators off the screen and learn to analyze charts the way a professional does. In short, those lacking price action reading skills.
I invite you to kill them all, all of them, don't leave one piece of shit indicator on the screen.
Stick to bars, highs, lows, support, resistance and trendlines, add multiple timeframes and eventually you will learn to read the fastest indicator out there, price.
Oversold, overbought, divergence, all amateur terms.
At first you will find yourself a little lost but as you gain screen time the effort will be worth it.
Anek
I invite you to kill them all, all of them, don't leave one piece of shit indicator on the screen.
Stick to bars, highs, lows, support, resistance and trendlines, add multiple timeframes and eventually you will learn to read the fastest indicator out there, price.
Oversold, overbought, divergence, all amateur terms.
At first you will find yourself a little lost but as you gain screen time the effort will be worth it.
Anek
a lot of people are saying to ditch the MA's
this may be true if can interpret and if your quick enough to make buying and sell decisions based on the interpretation of price.
however i'm having trouble understand how you dont use MA's on short time frames while using them on long time frames. you cant use long term data to determine a short term strategy. if this is the case has that been successful for you? when you compare long and short term data to determine an entry what do you mean by your long term? you already mentioned your short term is only 1-5 minute increments.
MA's and oscillators are nice tools to help you decide which side of a trade to be on, and narrow down an entry point. They certainly have little to offer in terms of predicting the future.
A moving average doesn't have any way to warn you that your previously strong stock is about to report earnings that don't meet wall st. estimates.
An oscillator can't tell you that a buyout rumor was just floated on the stock you shorted a few minutes ago.
These things all look great on a chart, and we've all looked at them and our gaze is always drawn to those situations where buying that crossover led to serious gains.
Further investigation later reveals those troubling times when things didn't quite work out as nicely.
If those are the only criteria you will use to base your trades, good luck. I'm guessing that the folks who use these indicators successfully are also using other criteria to determine their entry/exit points.
A moving average doesn't have any way to warn you that your previously strong stock is about to report earnings that don't meet wall st. estimates.
An oscillator can't tell you that a buyout rumor was just floated on the stock you shorted a few minutes ago.
These things all look great on a chart, and we've all looked at them and our gaze is always drawn to those situations where buying that crossover led to serious gains.
Further investigation later reveals those troubling times when things didn't quite work out as nicely.
If those are the only criteria you will use to base your trades, good luck. I'm guessing that the folks who use these indicators successfully are also using other criteria to determine their entry/exit points.
You already answered part of the question yourself when I repilied that I agree with you in the sense that MA's on a short (1 to 5 min.) timescale can be misleading and tend to whipsaw. If you are trading on these timeframes, try bringing up a 30 or 60 min. chart with your MA's as I suggested and you will see that it is clear where price is in relation to your MA's. If not, then it means you are in chop and should be standing aside. And, just for the record, I DON'T use time based candles, I use CV, I was quoting you.
Unless you are a super-scalper, I don't believe you have to be that quick to make decisions based on price interpretation. The longer term charts just assist you in being on the right side of the trade. Maybe it would help if you gave us some more insight into your method of trading.
well that should be the whole point to these moving averages and there are so many of them already. that shorter term MA which would be the 25 day crossing over the 50 day showing that recent momentum in market activity is greater than the longer term momentum activity suggesting strength in the market.
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And with 1& 5 minute charts being ''noise'';
moving averages on ''noise'' charts tend to be, well ,''noise''
May use a 5 minute chart[with ma, which stay on my charts]. for entry or exit;
but not as a main work chart,too noisy/too many useless signals
Wisdom is profitable to direct=======================
And with 1& 5 minute charts being ''noise'';
moving averages on ''noise'' charts tend to be, well ,''noise''
May use a 5 minute chart[with ma, which stay on my charts]. for entry or exit;
but not as a main work chart,too noisy/too many useless signals
Linked here...
https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-29#post-5645501