@Laissez Faire It just occurred to me that I should plot my personal MAs and standard MAs on the same chart for comparison. Having done so, the difference doesn’t look all that dramatic to me, but when it comes to interpreting what a chart is communicating, I find that viewing lines that appear even a little less “herky-jerky” makes a big difference for me personally. This is especially true given that I use several trendlines on my charts—not just the two that you see plotted here (neither of which are my true “instantaneous” trend lines, which I mainly use on higher time-frame charts). I just took a look at my "instantaneous" trend lines on a one-hour chart, and there is not necessarily a big difference there either. But there are individual moves made by a given candlestick here and there that are missed by a standard moving average. And whereas a 2-period MA might capture this aspect of price action, and a 3-period MA might capture that aspect of price action, I need a moving average that will reflect all aspects, even though they might come into play in only certain situations. So, the subtle differences make a big difference to my trading. (Accuracy and precision are key to my decision-making process.)
I made a method to trade one minute ES few years ago where trend is based off 100 sma. So long as price above 100sma and sloping up, trend is up. It is a more conservative way to trade and does reduce entries. One can make it even more conservative by using smaller sma to seek stronger trends so both SMA's have to be sloped same way.
Absolutely! SMA(100) is very close to the (yellow) MA I selected for one-minute index charts, except that I use higher SMAs to seek stronger trends (the blue and white MAs). Image from TC 2000 chart
The yellow is nowhere close to 100sma cause this charts' yellow is not very smooth. The white MA is closer to the 100sma smoothness.
If there was a highway cop chasing an evasive villain driving through town, would the cop use a moving average to determine which road villain will next head down?
Currently for trading dax and nq loving this setup. M1 13sma 24ema ( envelope 0.01% to make it fat. BB 13sma 3.0 and 1.5 Calling direction changes and pull backs to enter with trend fantasticaly.
%% Amen and agree; plenty of stuff works in an uptrending bull market.......................................................................................................
Moving averages are, by definition, lagging indicators. They trail behind prices. If the price rise, MA will follow suit; if the price drop, so too will MA. MA crossover between two MAs is a lagging indicator on steroid. It's like driving while looking in the back mirror.