If You Trade Using Moving Averages, How?

andre.salmeron said:
1. They are all Fibonacci numbers, I got the values from another trader and they worked well enough. The important thing to keep in mind is that whatever MAs you are using, they should be separated a factor of say 3 or 4 times the value of the other. I believe 20, 50 and 100 are simply too close together.

2. If the averages were aligned on the one hour chart, I'd go to the 15 minute chart and if they were also aligned, I would buy/sell when price interacted with the 34 moving average.

3 - The bands served as a simple margin of error (0.25 deviations), so I would wait for the actual MA and these deviations to finish crossing each other.
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"I'd go to the 15 minute chart and if they were also aligned, I would buy/sell when price interacted with the 34 moving average."

Do you mind expanding on this please? Specifically when you say price interacted with the 34 MA?
 
If I trade using moving average,

then I wouldn't be able to trade at all.


I remembered 40 years ago, I manually plotted
moving average line on the graph paper.
Every evening, I'd use the calculator and calculate the MA.
I could only plot MA5.

CANNOT PLOT MA 10, MA20, MA100, MA200 .... !!! It would be hell plotting it !!!!
 
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The analysis depends on the duration of the moving average period. Usually, the period of 21 days is used to analyze the trend using a moving average. The larger the indicator setting, the longer the period it analyzes the trend and provides a more reliable analysis. If you reduce the duration of the analysis, the results can be inaccurate and provide false signals.
 
Tradex said:
In my opinion moving averages work best as an objective exit tool.

On the other hand they generate tons of false signals if used for entry after a cross over.
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I see your points;
but using a 50 or 55.................. day moving average with discretion, seldom gives false signals. Cross overs may give plenty of false signals, especially on smaller time frames.
 
murray t turtle said:
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I see your points;
but using a 50 or 55.................. day moving average with discretion, seldom gives false signals. Cross overs may give plenty of false signals, especially on smaller time frames.
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I always try to find best confirmation to cross over and so for that I see volume candles too, what you see for making your prediction more assuring?
 
Dr_Trade said:
I always try to find best confirmation to cross over and so for that I see volume candles too, what you see for making your prediction more assuring?
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Moving average crossovers are so hated, so lagging/no wonder they can still work well;
50 or 55dma + 200 day movin' average can still work well. I sold my QLD this month well before it crossed 50 or 55 dma.
Planned on selling my UDOW[ smaller than QLD position]but it's doing better than i thought , so i may may not sell it @ all. DEC 1st tend to be a bit weak on dow, so i'll have to wait + see......[Edit/ Best thing about about 50/55dma/200dma they help profits run + run, maybe not in SEPTember, but November/December/Jan...........................................................]
 
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