Moving Averages discussion

[lindq]

ok,
After my unusual large loss today I am going to revisit the moving average. I would say 80% of all indicators involve a time period or and average in the calculation and that makes u think then arent most people just buying the ma average anyway?

looking for any thoughts or ideas on the moving average as well as your experience with ma.

lets not involve macd lets keep it to the moving average. all different types are fine any tweaks fine and multiple are fine but lets keep it simple pardon the pun.

If trading price action it seems to me that going with the trend requires a latent entry. after the mkt has turned so isnt this truly just a break of the moving average after a change in direction? it seems to me that ma get a bad rap but actually can be the shortcut to even doing technical analysis bar x bar.

good bad ugly just post whatever about ma.

MAs are a crutch, and not much help in any time frame.

All you need to trade successfully is
(1) A measure of volatility
(2) Open, Close, High, Low of your instrument compared to x number of previous bars
(3) An exit. (Profit target, Loss target, Bars or time)

That's what price action is, and that's all you need.

Here's an example of a short entry on an instrument I trade, which is one of the most profitable in my toolbox.

ENTRY AT OPEN OF BAR IF: CL.1>OP.2*1.10 OR CL.1>LO.1*1.08 OR CL.1>CL.2*1.08 OR CL.1>OP.2*1.10 OR (CL.1>OP.1 AND CL.1<HI.1*.97) OR (CL.1>OP.1 AND HI.1>OP.1*1.05)
EXIT: AT CLOSE OF BAR

There is not an MA or indicator in sight. All price action

 

[Turveyd]

lol my fault you cant read ha later

Not our fault, you've obviously had a really big loss and your losing the plot, stop posting, stop trading and calm the fuck down.

 

[tomorton]

An MA is a very effective tool at defining the trend direction in that particular time period. The state of a trend in another time period is described using a suitably longer or shorter MA.

MA's do not give effective entry signals. They do not indicate that a reversal will occur within the next bar. They do not confirm whether a pull-back will become a trend failure.

 

[murray t turtle]

They say the trend is your friend.
True.
Ignore the trend and you will see how it becomes your worst enemy.
True too.

%%
True;
counter trends simply dont las as long.Back to my 50 day moving average...……………………………………………………………………………………………………………………...

 

[Trader200K]

MAs are a crutch, and not much help in any time frame.

All you need to trade successfully is
(1) A measure of volatility
(2) Open, Close, High, Low of your instrument compared to x number of previous bars
(3) An exit. (Profit target, Loss target, Bars or time)

That's what price action is, and that's all you need.

Here's an example of a short entry on an instrument I trade, which is one of the most profitable in my toolbox.

ENTRY AT OPEN OF BAR IF: CL.1>OP.2*1.10 OR CL.1>LO.1*1.08 OR CL.1>CL.2*1.08 OR CL.1>OP.2*1.10 OR (CL.1>OP.1 AND CL.1<HI.1*.97) OR (CL.1>OP.1 AND HI.1>OP.1*1.05)
EXIT: AT CLOSE OF BAR

There is not an MA or indicator in sight. All price action

Lindq,

Interesting.

What bar interval are you using?

 

[Tradex]

I used MA before and I have deleted it years ago.

Why, because you still haven't found a way to profit from it?

Used wisely, I can assure that moving averages can greatly enhance the trading results of any trading system.

And, at the very least, they can prevent the trader from betting against the trend.

 

[Tradex]

MAs are a crutch, and not much help in any time frame.

Please allow me to rephrase your post:

"Me, Lindq, have not found a way to profit from moving averages, yet".

 

[lindq]

Please allow me to rephrase your post:

"Me, Lindq, have not found a way to profit from moving averages, yet".

That's a nice hat, but it doesn't hide the fact that new traders have probably wasted more valuable time chasing MAs up, down, and sideways, than any other activity.

Better for them to simply ask: Where is price now in relation to where it has been, and what does that tell me?

Nearly every indicator looks at that simple, basic question, and tries to embellish it to the point of obfuscation.

 

[panzerman]

If you are going to use MAs, one should learn to view them as lowpass digital filters so that you can better engineer them to meet your needs, which typically means less lag and better attenuation of the "noise." John Ehlers is the man to study for digital filtering in finance.

None of the more advanced math will mean that you will make money of course. A lot depends on how you use them in the context of a trading system.

 

[Stephbaker]

The charts are quite informative!