Does anyone change their moving average period based on volatility?

Discussion in 'Technical Analysis' started by jennywestwong, Feb 25, 2021.

  1. I am interested to know if anyone change their SMA/EMA/WMA/KAMA/LRMA/etc. when volatility changes? Let say ATR is rising, would you increase/decrease the MA period to make it more/less sensitive? And the bigger question would be, is there a relationship between volatility and moving average?
     
    murray t turtle likes this.
  2. Trader Curt

    Trader Curt

    Yes sometimes the chart matches better when you change the MA, but the higher you set it the more weight it holds. I normally will keep mine on the 90 day and 200 day MA. And then it also changes with the time frame you look at.

    But I rely mostly on trend lines, because other traders seem to respect them more than MAs
     
  3. %%
    YES JWW;
    something like that. Say its rising 200,20, 50, some times 55 period ma covers it nicely.
    Monthly, weekly, weekly even if its weak, daily, 4 hours, hourly candles, 30 minutes........................................................................................................
    Some chart services keep a 200 period ma on days + 30 minutes, so i make sure to include that..........................................................................................................
    As fara s sma, ema, wma, all those are good + some better on way or some better on the way down:caution::caution::caution::caution::caution::caution:,:caution::caution:[Interesting even on an 50 period ema, it will VARY on 2 or 3 different chart services!! + thats good we dont want all buying or selling @ same time]
     
  4. easymon1

    easymon1

  5. hilmy83

    hilmy83

    vwap people...v effin wap
     
    NoahA and newbunch like this.
  6. treeman

    treeman

    Range expansion, unless it’s unidirectional, is uncertainty. And if it is unidirectional, it will lead to uncertainty. That suggests your standard rulebook, isn’t as standard anymore, and other observations are more important
     
  7. easymon1

    easymon1

    murray t turtle likes this.
  8. Big AAPL

    Big AAPL

    VWAP is based on Volume. For me it has nothing to do with Volatility. Try adjusting a Volume based chart to the days current volume and you may find some interesting correlations...
     
    murray t turtle likes this.
  9. Tradex

    Tradex

    Exactly, it has been proven over and over again that these "new", fancy moving averages perform no better than simple moving averages.

    Keep it simple folks, keep it simple, profitable trading has absolutely nothing to do with complexity, far from it.
     
  10. Tradex

    Tradex

    VWAP is certainly a very powerful indicator, if used in conjunction with other indicators and chart patterns, like the up/down volume and simple breakouts of support/resistance lines.
     
    #10     Feb 25, 2021