Moving Averages discussion

Discussion in 'Technical Analysis' started by traderking007, Sep 11, 2020.

  1. ok,
    After my unusual large loss today I am going to revisit the moving average. I would say 80% of all indicators involve a time period or and average in the calculation and that makes u think then arent most people just buying the ma average anyway?

    looking for any thoughts or ideas on the moving average as well as your experience with ma.

    lets not involve macd lets keep it to the moving average. all different types are fine any tweaks fine and multiple are fine but lets keep it simple pardon the pun.

    If trading price action it seems to me that going with the trend requires a latent entry. after the mkt has turned so isnt this truly just a break of the moving average after a change in direction? it seems to me that ma get a bad rap but actually can be the shortcut to even doing technical analysis bar x bar.

    good bad ugly just post whatever about ma.
     
  2. trader1974

    trader1974

    They say the trend is your friend.
    True.
    Ignore the trend and you will see how it becomes your worst enemy.
    True too.
     
    murray t turtle likes this.
  3. maxinger

    maxinger

    I am not sure how MA discussion will help you to be a better trader.
    lots of professional talkers and writers use MAs.
    Guppy is one of the famous guys who use MA.

    I used MA before and I have deleted it years ago.

    You are going to get conflicting confusing
    suggestions.


    about your unusual large loss today
    (was it NQ trading during US session?), one way for you to learn
    is to post your trade (what financial instrument, when entered when you closed position ...).
    Then we can analyze your trade.
     
    trader1974 likes this.
  4. It is a target and entry point for PA traders, both scalpers and swing traders, however it is less reliable then other support and resistance zones like big round numbers, previous closes highs and lows
     
    trader1974 likes this.
  5. trader1974

    trader1974

    The best price indicator is the price Can tick charts help you better read the trend?
     
  6. kroxobor

    kroxobor

    There are some evidences that some assets (talking about FX pairs) are "more trendish" than others. Can be indication of more momentum presented there since trend is basically another name for existence of momentum. Changing MA window didn't bring extra insight in backtesting.
     
  7. easymon1

    easymon1

    what time frame charts do you like?
    what hold times do you generally have?
     
  8. Turveyd

    Turveyd

    This is all M1 LWMA based, using High and Low to adapt to bar size then Envelopes to add extra range.

    Ma's on there own get you whipsawed to often.

    Details in need Somewhere to think out loud thread posted recently.
     
  9. Traderking:

    What time frames are you trading?

     
  10. expiated

    expiated

    I told myself I was not going to respond to threads belonging to other ET members anymore. So, I might end up regretting this, but here goes anyway...

    Moving averages do indeed get a bad rap, especially on this forum. But after carefully studying price action as objectively as I possibly could (between 2011 to 2015), in the final analysis, moving averages and price ranges turned out to be the only two indicators I trusted. From the time I joined ET three years ago (August 2017), many have tried to convince me that I shouldn’t—but my experience has suggested otherwise. (Since 80% of all indicators involve a time period or an average in the calculation, why not simply use them directly?)

    Last year I found a guy who concurs with my point of view. You can get a detailed explanation or description of how we view moving averages by conducting a search on YouTube using keywords: “No Nonesence Forex Baseline Patrick VP.”

    (I’m referring to the video Patrick [VP] recorded a year ago—not the one Dave recorded last month.)

    For example, by simply glancing at the slope of the yellow, red, and blue moving averages on this chart and their positional relationships with one another, it becomes fairly obvious to me as to when price begins rising and when it starts falling.

    ScreenHunter_8677 Sep. 11 05.57.jpg
    And from my perspective, the problem with latency or lag is easily handled by dropping down to a lower time frame. Unlike any other system with which I’m familiar, the way I incorporate moving averages has been to identify a specific baseline to track the direction of price from the perspective of each temporal context of interest to me (i.e., one-minute, five-minute, fifteen-minute, thirty-minute, and sixty-minute time frames). In other words, I do not use the conventional 10-, 20-, 50-, 100- and 200-period MAs.

    This means that if I were to use SMA (10) to track the hourly trend on a 60-minute chart, I would use SMA (120) to do the same thing on a five-minute chart, and rely on faster moving averages within that same context to pinpoint precise entry and exit levels from a one-hour perspective, with the result being essentially no lag time/latency.

    As you can see, using this approach has put me way ahead during the last two 24-hour market cycles...

    ScreenHunter_8678 Sep. 11 06.26.jpg
    Unfortunately, when I woke up this morning, I found that EURAUD had handed me a $71.44 loss. When I checked my charts to see why, I discovered that had I been monitoring the position instead of going to bed, I would have witnessed the moving averages convey to me that the pair had reversed direction immediately after I entered the position and I could have gotten out early to minimize the hit, and possibly even sold the asset to promptly recoup my loss and then some.
     
    Last edited: Sep 11, 2020
    #10     Sep 11, 2020