Using a 30 Minute-10 day chart?
- Thread starter oldman73
- Start date
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Yes,20 period on 60 minute candles;
& you had to start with a 20 day chart to get 2o day moving average,50 day chart to get a 50dma.
I lkie the question someone asked about an ipo,when can i use a 50dma on it;
the answer-it takes at least 50 days
I'm just restating above, and adding a bit.
Moving averages and indicators are based on the time frame of the bars on your chart, not the length of the chart. The time frame of the bars on your chart is known as the period. On a daily chart, ie., each bar represents a day, the 20ma is a 20 day ma.
So if you have 10 days of data using 30-minute bars or periods, the 20 ma represents the last 20 30minute bars. If you have a 20 day chart of 30-minute bars, the 20ma still represents the last 20 bars.
Charting packages have historical loaded even though it might not be on your screen. You might have 20 days of 30 minute data on your screen, but the package has many more days in your memory. Because of this, you can change from a 10 to a 20 to a 200 period moving average even though you might only have 20 days of 30-minute data showing.
Moving averages and indicators are based on the time frame of the bars on your chart, not the length of the chart. The time frame of the bars on your chart is known as the period. On a daily chart, ie., each bar represents a day, the 20ma is a 20 day ma.
So if you have 10 days of data using 30-minute bars or periods, the 20 ma represents the last 20 30minute bars. If you have a 20 day chart of 30-minute bars, the 20ma still represents the last 20 bars.
Charting packages have historical loaded even though it might not be on your screen. You might have 20 days of 30 minute data on your screen, but the package has many more days in your memory. Because of this, you can change from a 10 to a 20 to a 200 period moving average even though you might only have 20 days of 30-minute data showing.
As you learn and grow youll realize looking at your data from varying views will give you specific perspectives..... Its hard to trade intraday looking at a daily chart, as you dont "see" visually the price movement patterns. Though there are those who can just look at the numbers and trade like maniacs... Of that school I am not. I trade best with 5 minute and 20 minute charts....
Harold you raise an interesting point, and for the sake of debate I disagree with it. I don't have any of my charts set for 24 hours. I rarely daytrade anymore, which is one reason, but I do watch intraday movement. The other is that the after hours and before hours volume is usually so light as to render the price movement insignificant, imo. My philosophy is I want to ride the changes made by bigger volume and bigger money.