Question about moving averages

panzerman said:
Your rules are BS because they are not precisely defined. How is a "strong" candle defined? How is an upthrust defined? You need precise mathematical definitions for your rules so that they can be programmed into an algorithm, or perhaps even a spreadsheet.
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Hi Panzerman,

I’m a systematic trader so I have precise rules for every aspect of entry, initial stop-loss, trailing stop-loss system and target prices using mathematically defined parameters for indicators (moving average, momentum, volatility) and candlestick structures.

This thread is focused on moving averages so I really only talked about that type of indicator, I guess primarily attempting to defend it and point out that MAs can indeed be quite useful. If you take a look at some of the charts I’ve posted recently in other threads I think you’ll get a good idea of how the decision to enter trades is made.
 
SunTrader said:
Next show chart pic when price is NOT trending.
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Hi SunTrader,

I tried to do that by showing 5 minute charts for every single day of the past week of trading days (the last 6 trading days without skipping any). Take a look at the bottoms of the charts and you'll see that they start at around 8:00 AM and end at around 3:00 PM central time each day. Was trying to avoid cherry-picking issues...
 
maxinger said:
Your analysis is not acceptable as your sample size is too small.
also do not hand pick the charts.

You should analyze it on at least a thousand charts.
Then show us the results.
if out of 1000 charts and your analysis showed it worked on ~ 500 charts,
you should be a billionaire by now.
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Hey there Maxinger,

You're certainly right about the sample size needing to be much larger when one goes about testing a trading system.

In this case I just wanted to make the case that moving averages can be useful and point out how I use them.

Note also that 5 minute charts for each of the past 6 trading days, beginning at about 8:00 and ending around 3 PM every day, were chosen to avoid hand-picking particular charts simply because they have good trends. Those charts contain all the the ups and downs of the ES that occurred during each trading day from market open until late afternoon.
 
Slope Trader said:
Hi SunTrader,

I tried to do that by showing 5 minute charts for every single day of the past week of trading days (the last 6 trading days without skipping any). Take a look at the bottoms of the charts and you'll see that they start at around 8:00 AM and end at around 3:00 PM central time each day. Was trying to avoid cherry-picking issues...
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Did I missed somehow the post that includes
 
SunTrader said:
Uhhh you do know MA on a daily chart are not fixed in position till the close? That is just one of many drawbacks of their use.
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%%
TRUE;
they really do move, but that'$ not the fault of any ma. As your post implies;@ end of day all have voted.
200 ma on weekly '' doesn't feel right ??'' Then dont use it.
50 month SPY ma still going up/ but i seldom use a 50mo moving average:caution:
 
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