If You Trade Using Moving Averages, How?

[murray t turtle]

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.

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I hate that, when its a clean close, end of day below 50dma /then turns around . But that's not the fault of the 50dma.

 

[nooby_mcnoob]

%%
I hate that, when its a clean close, end of day below 50dma /then turns around . But that's not the fault of the 50dma.

My general assumption is that the trend will continue. If it isn't going to continue, then I get out and wait for a retest to change sides. Of course that is not necessary with stock indices, since the Federal Reserve has a mandate to keep the indexes forever above 50 DMAs.

 

[radex78]

Basically, I am ever learning about how to use Moving Average, the most usage of MA is use two MA for a long period and short period, how to trade is from crossing between short MA to long MA, if crossing from up to bottom, sell signal, if crossing from bottom to up buy signal, and there are MA setting used for long term trend analysis like as use MA 200, the line act as dynamic support resistance. sometimes I am using MA to analyze the chart in FXOpen.

 

[murray t turtle]

My general assumption is that the trend will continue. If it isn't going to continue, then I get out and wait for a retest to change sides. Of course that is not necessary with stock indices, since the Federal Reserve has a mandate to keep the indexes forever above 50 DMAs.

%%
LOL\ some called it the Greenspan put. I never called it that+ some times front run a 50dma buy on SPY/sqqq or SPXS/SPXU. SO many kinds of 50dma, the fed has a fun job to do,2.

 

[tomorton]

Basically, I am ever learning about how to use Moving Average, the most usage of MA is use two MA for a long period and short period, how to trade is from crossing between short MA to long MA, if crossing from up to bottom, sell signal, if crossing from bottom to up buy signal, and there are MA setting used for long term trend analysis like as use MA 200, the line act as dynamic support resistance. sometimes I am using MA to analyze the chart in FXOpen.

MA's are very useful in confirming trend existence, direction and consistency. But my advice is to try and move on from using crossovers as entry signals, they're very poor at timing entries. The point in time at which the crossover prints is not late or lagging recent price action, it is outright irrelevant.

 

[schizo]

Moving average is just that. The average of retarded traders clamoring for a breakout or selloff. It used to work way back in the 90s. Now with all the algos and bots, however, it no longer works. These are just my own opinion, of course.

 

[murray t turtle]

MA's are very useful in confirming trend existence, direction and consistency. But my advice is to try and move on from using crossovers as entry signals, they're very poor at timing entries. The point in time at which the crossover prints is not late or lagging recent price action, it is outright irrelevant.

%%
Worked well in 1999.Works well in 2009+ today...........
Crossovers seldom work well unless its 200dma, 50dma cross. Wisdom is profitable to direct+ much better than fake news

 

[tomorton]

Moving average is just that. The average of retarded traders clamoring for a breakout or selloff. It used to work way back in the 90s. Now with all the algos and bots, however, it no longer works. These are just my own opinion, of course.

MA's are great at confirming the set-up relative to trends. I think that's all they're good for.
So for example -
crossovers are a rubbish entry system
price/MA crossovers are a rubbish exit system
multiple MA bands are just a cosmetic over-complification

 

[radex78]

MA's are very useful in confirming trend existence, direction and consistency. But my advice is to try and move on from using crossovers as entry signals, they're very poor at timing entries. The point in time at which the crossover prints is not late or lagging recent price action, it is outright irrelevant.

The most problem with MA crossover is the lagging signal indicator, giving a signal when a trend already formed, the lack entry based MA crossover is missing some pips and probably only short trend and reverse.

 

[tomorton]

The most problem with MA crossover is the lagging signal indicator, giving a signal when a trend already formed, the lack entry based MA crossover is missing some pips and probably only short trend and reverse.

I actually say its not lagging - its worse than that, its irrelevant.