Moving average no longer working

T

tmclimon

Guest
I am on EURUSD, which is moving at a super fast pace with weird fundamental news everyday and even weirder market reactions.

I've been considering defining a strategy depending on moving averages. But I am quite not sure anymore that it could work with such a changing market. Your thgouhts about that ?
 
Thats true!

The current market activity is erratic, especially on shorter time frames. We are getting 3-5 days of choppy market followed by a wild 200 pips one day swing. Moving averages get whipsawed under these conditions.
 
Quote from tmclimon:

I am on EURUSD, which is moving at a super fast pace with weird fundamental news everyday and even weirder market reactions.

I've been considering defining a strategy depending on moving averages. But I am quite not sure anymore that it could work with such a changing market. Your thgouhts about that ?
More...


Superman has kryptonite, wolverine has magnito...........moving averages have range bound markets.

At some point you will learn that every system, every tool has its own kryptonite but that still doesn't mean you cannot be a superhero!
 
"Moving average no longer working"

MA is a blunt instrument that is a simple derivative of price in most cases.

The Trader is a sharp instrument who takes a position and stops based on price plus in some cases blunt instruments.

Oopps ... I have lost my way.
Just remind me which is no longer working.

regards
f9
 
it depends on what ma's your using too..longer ma's like 50, and 200 are always nice to have on because a lot of people see them, and react to those levels. I use a 8 and 15 myself, but they work best in trending markets, not sideways ones.
 
MAs work & MAs don't work - same as everyfink else.

Like fearless said they are blunt, but I have found them to be excellent tools, as long as you are aware of their limitations.

Many people make the mistake of using MAs wrongly e.g using them for crossover systems.

Just my 2 cents worth...
 
Quote from OnTrial:

MAs work & MAs don't work - same as everyfink else.

Like fearless said they are blunt, but I have found them to be excellent tools, as long as you are aware of their limitations.

Many people make the mistake of using MAs wrongly e.g using them for crossover systems.

Just my 2 cents worth...
More...

what other ways are there to trading ma's?... yes crossovers are nice, but they can give very late signals in strong markets. I like the Parabolic SAR to use with my ma's to help me.
 
Agree that was a super naive thread and especially subject :)
But if you consider newcomers to forex, like myself, we are, or at least we should, reading many many accounts from different sources about how to trade.
And most of these accounts are pre-crisis so you have to second guess if they would still be accurrate.

My point was not about saying some magic potion is not working anymore but how you use things like MA during such times.
 
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