Moving Average.

[aryan]

the flaws from using moving average is we must pick the right combination period, cause as we know if we pick too short period than the signals could be false but if the period too long we'll surely late to enter the positions. so every trader will have their own acceptance to this periods. all you have to do is try all the combination that you can find in the internet or try to make one, soon you will find which one is the most suit to you.

[Abdomhadi]

I believe that change the level of EMA in each table! is good but you want more seeds than you can change the range of the line between the EMA such as 10 and 30! then there will be an extended period you choose and who did the most average risuqes and so it's best not to follow characters with 15m then good luck to all

[faruq]

My suggestion is to use MA as Support and resistance. So if you want an Easy MA cross over strategy, DO what is explained Above, but do not enter, Wiat for Price to come back down and touch the 14MA before getting in.

[jimloveski]

Hi guys,
I want to know if you use MA as means of predicting a trend turn? For example I use 2 exponential MA curves, one on a period of 12 (short moving average) and another on 26 (long moving average). So basically whenever the short moving average curve crosses the long moving average one, I know the trend is likely to change. This has worked good for me for the last 2 weeks on short period graphs (5 and 15min). But the problem is once the cross happens the price is allready high, so the profits are not so big (10-30 pips max).

This is very popular and simple strategy. Of course you can't expect to win every position. Try to do backtest on daily or 4H chart- you'll see that profit is much bigger.
+10-30 pips max? it is not the problem- next time you'll see setup- open 3 position with the same direction- you will have +30-90 pips

BTW: don't use this strategy during sideway trend!

[fxquest]

Moving averages acts as good support or resistance levels and so provide good opportunity to trade when prices are near these levels and so good bounce back is expected.

[Susti]

so I guess the more distance between the EMA I take the stronger the trend will be if they cross? For instance if I put 10 and 40 on 1hour chart, that will show a stronger trend?

or does it depend solely on support/resistance lvls and EMA is just here to show the change?

Well you see most of the time I'm scalping, and that is why I'm using the 5min and 15min charts. I have started with them and learned to take those 10 pips profits, as I usually don't like to leave positions opened after I leave the computer.

[Gab]

You should change the level of EMA in each chart! If you wanna get more pips you can change range between to EMA line such as 10 and 30!But the long period you choose the more risk you get! You should not follow with 15m char you should only use 30min chart 1 hour chart and 4 hours chart! These chart is more accurate than these others!

[Susti]

ok so should I be using both the simple and the exponential MA?
because for now I have been using EMA with different periods (like I said 12 and 26 ticks). Should I change the periods for different time charts (like 15min and 1h)?

Like I said I wonder if I could make this method more accurate, so it would show the market change before the big moevements actually happening? Cause now when I see that the market is active and that the short moving average has been moving towards the long one I just make my move with a short stop loss if the trend change doesn't happen.
I guess what I'm asking is what would be the best time to enter the market when you see this?

[Gab]

There are two basic/popular kinds of moving average line they are Simple Moving Average (SMA) and the Exponential Moving Average (EMA) you can use these line to predict the trend of market however it is only the trend not the correct moving of the market ! You can not know the depth of the trend so you can depend on other indicator like RSI or use the new like a sources to predict the moving of the market!

[Susti]

Hi guys,
I want to know if you use MA as means of predicting a trend turn? For example I use 2 exponential MA curves, one on a period of 12 (short moving average) and another on 26 (long moving average). So basically whenever the short moving average curve crosses the long moving average one, I know the trend is likely to change. This has worked good for me for the last 2 weeks on short period graphs (5 and 15min). But the problem is once the cross happens the price is allready high, so the profits are not so big (10-30 pips max).

Am I doing something wrong? Is anybody else using this and what are your thoughts on it?



This is a graph of what I'm talking about, the blue line is short moving average, the green line is long moving average.