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moving averages give very good signals.since the logic behind moving averages is it shows us the average changes between the prices with in that time frame so it gives as a signal or idea that price is going to change.all we have to is to watch the daily pivot and also support and resistant line then we can have good trades.
Moving averages is one of the most popular indicator. It has many adventages. You can combine it with any other indicator. MA is also a support and resistance level which is very useful. For example EMA 75 & EMA 85 are great S&R levels at 1H chart . Try it- it really works
I don't like using moving averages. They lag behind the actual price a lot. The crossovers sometimes don't work and overlap several times. When the market is flat then you get crossovers several times and it can really lose you a lot of trades.
Likewise me, I don't believe in moving averages why because they are lagging indicators, I have come across situations when there would be a crossover and when I placed a trade, it turn out to cross again and again with no real pattern.Quote:
Originally Posted by goldenmember
i like it :)
i use ema 5 and 34 to entry and exit i read about it on other forum this is the best settings for daily Candle
reggard
sammy
True, moving averages are good indicators and use of this indicator is also quite easy because I myself use a simple moving average indicator is to determine the direction of the trend due to the moving averages we can predict the direction of the trend in forex marketQuote:
Originally Posted by jg6073727
Hello Everyone, moving Average Time Frames Shorter length moving averages are more sensitive and identify new trends earlier, but also give more false alarms. Longer moving averages are more reliable but less responsive, only picking up the big trends. Use a moving average that is half the length of the cycle that you are tracking. If the peak-to-peak cycle length is roughly 30 days, then a 15 day moving average is appropriate. If 20 days, then a 10 day moving average is appropriate. Some traders, however, will use 14 and 9 day moving averages for the above cycles in the hope of generating signals slightly ahead of the market. Others favor the Fibonacci numbers of 5, 8, 13 and 21. 100 to 200 Day (20 to 40 Week) moving averages are popular for longer cycles; 20 to 65 Day ( 4 to 13 Week) moving averages are useful for intermediate cycles; and 5 to 20 Days for short cycles. Thanks.
Moving average show us the average price of some specific period. Most of traders like moving average. It is also used to get good trading signal by its crossover system.
If you are planning a period of 5, then the Simple Moving Average on a 1-hour chart, you will add the closing price for 5 hours, and then divide that number by 5. Voila! You have an average closing price over the last five hours. String is the average price the same and you get a moving average. If you plot a simple 5-Simple Moving Average on 10-minute chart, then you will add the closing price of the last 50 minutes and then divide that number by 5. But if you plot the 5 Simple Moving Average on 30-minute chart, you will add the closing price of the last 150 minutes and then divide that number by 5. If you plot the 5 Simple Moving Average on a 4-hour chart.Quote:
Originally Posted by Sun-Moon
On most charting packages will do all the calculations for your convenience. Reasons to explain "how" to calculate the Simple Moving Average is very important to understand that you will know how to edit and tweak the indicator. How to Understand the indicators are working then you are able to organize and create a different strategy.
Now, like almost all other indicators out there, Moving Average operating with delay. Because you will take an average price of past history, and you will only see the past and "future" short-term rates.
atudy moving avreages!
The moving average was likely the first technical study used by traders and investors to determine the trend of the market. The moving average smoothes price fluctuations by averaging a selected number of prices. This removes what engineers refer to as “high-frequency noise" from the data, and from the trader’s standpoint, the smoothing creates a study that can be used as a definition for the trend. The average price is plotted on the price chart along with the price bars. There are different ways to calculate the average price, including simple, exponential, weighted, and smoothed calculations. CQG carries two studies, the moving average and the moving average cross, both of which can be formatted to the trader’s interest and be a part of conditions, custom studies, alerts, and trading systems.