If You Trade Using Moving Averages, How?

[oraclewizard77]

If price is trending along with the moving average, then it can help determine trade direction.

If price is going above and below them, then ignore them and trade the ranges.

 

[Dr_Trade]

Could you post up a chart image or two of this method?

Strong sell volume candles at cross over.

 

[easymon1]

Being a 4 hour chart, the example may tend to exaggerate the vol/MA Cross correlation if occurs during main session.
These three worked fine on Low relative Vol on 1 minute charts.
Have you collected stats on MA Cross success rates vs With and Without Expanded Volume?

 

[nooby_mcnoob]

Moving averages can be thought of as "automatic trendlines". That's how I use them if I do. If the trend lines are flat, then the trend is flat and you range trade. If sloped, then you can use mean reversion + levels + volume to see if there will be a trend continuation. Don't use a 5 minute EMA to make decisions on a weekly timeframe.

 

[easymon1]

View attachment 271789
Strong sell volume candles at cross over.

Being a 4 hour chart, your example may tend to exaggerate the vol/MA Cross correlation if occurs during main session.
These three on the RTY worked fine on Low relative Vol on 1 minute charts.
Doc, Have you collected stats on MA Cross success rates vs With and Without Expanded Volume?

 

[Dr_Trade]

Being a 4 hour chart, your example may tend to exaggerate the vol/MA Cross correlation if occurs during main session.
These three on the RTY worked fine on Low relative Vol on 1 minute charts.
Doc, Have you collected stats on MA Cross success rates vs With and Without Expanded Volume?

Thanks @easymon1, I will try to collect data on this and finding some correlation, will share that.

 

[nickiewinters]

Plot a couple of moving averages on a chart instead of one. I personally use three moving averages at different positions and take a signal only when there’s a strong directional bias.

 

[easymon1]

Plot a couple of moving averages on a chart instead of one. I personally use three moving averages at different positions and take a signal only when there’s a strong directional bias.

What timeframe charts do you like to trade?

 

[murray t turtle]

Moving averages can be thought of as "automatic trendlines". That's how I use them if I do. If the trend lines are flat, then the trend is flat and you range trade. If sloped, then you can use mean reversion + levels + volume to see if there will be a trend continuation. Don't use a 5 minute EMA to make decisions on a weekly timeframe.

%%
Good.
Some charts, for example take a 50day moving average;
+auto apply that to 50week ma.......... I prefer those auto trendlines, avoids any trader/investor bias.

 

[nooby_mcnoob]

%%
Good.
Some charts, for example take a 50day moving average;
+auto apply that to 50week ma.......... I prefer those auto trendlines, avoids any trader/investor bias.

Right, and you can trade _with_ the moving average from the most part or if your chart doesn't show a strong trend with the MA, find another chart.