the best moving averages to trade Forex are...

Discussion in 'Forex' started by increasenow, Jan 15, 2009.

  1. 100 or 200?..or both...or something else...on what time frame periods? EMA or simple MA?...what do you all think or use?...obviously know it is not the grail but good for noting support and resistance...please add your input and insight...thanks...
  2. The 18 and 40 SMAs
  3. no offense are being serious...correct? how did you ever arrive at 18 and 40?..please explain...very interested. Thanks for your post and good to hear from you...
  4. Yes, I'm being serious.

    Trading using moving average doesn't provide the best edge that I trader can use, but it does provide a decent one if used correctly. I've tested that combo out on a thread I was running with very positive results from other traders who handn't used it before.

    Google "The Magic of Moving Averages" if you want more information it.

    Google is your friend. :)
  5. LOL i love these questions.

    all ma's type show an average of the last x amount of bars. and then depending on the type they are they are calculated differently. your question is very vague as anyone can also have a different time frame so this really makes the whole thing much more complex.

    trading is an art not a science. hence the MA's are only used as a visual aid to show you trend & strength of trend. the lower the number the faster the MA will be.
  6. okay..please break down what MA you use per each one of your time frames...thanks very much!
  7. OP

    you are at early stage in trading

    still looking for vodoo

    I suppose a Kentucky gentleman like me can give you the holy grail right now

    Market is random

    distribution is not

    Well I tried, I tried :cool:
  8. The answer to the question depends on you. What timeframe do you plan to trade? How do you define a pullback? Then, what mas seem to support your plan? Do different mas work in a "normal" trend vs those that work in a breakout?

    If you have answers to those questions you have the best mas for you and the forex pair you are considering.
  9. I use MAs for a visual aspect only - to provide possible entry points that I confirm in my own way.

    Displaced Moving Averages have been money for me in trial and practice.

    7x5, 25x5 mainly, sometimes 3x3
  10. It depends on the time frame. 200MAs works surprisingly well from the 5M to the Weekly. 20,50 and 200 are the standard.

    The higher the time frame, the stronger the R/S levels will be. I don't think that cross-overs are that useful, but if you have a look at the monthly S&P500 chart with 20,50,200, I think you'll agree that the averages could have generate some nice signals for the 1982-2000 bull market.

    Also, if a chart is bouncing off the 20MA for a while without even touching 50 or 200, you could be looking at a bubble (see chart).
    Also the bottom in 2003 was formed by the monthly 200.

    Hope this helps.

    #10     Jan 15, 2009