Whats the best way to use MA's

Hi all, you good members of the FF

MA’s we all seem to use them to some extent, there are so many combinations, but in your experience what’s the most reliable way to use them?

Using them for S/R on the longer time frames seems to be the favourite. Crossovers are used with systems and on their own. What’s the best set up for lower time frames like 15m indeed are they reliable on lower T/F’s On combinations can you have something like 5/25 and how do you decide on the type of MA - S/E/W.

I’ve not been trading that long but I’m looking to trade on price action (Having read James 16) and possibly MA’s

Your views and experiences would be appreciated

Cheers
Slade

If you have read James16 chart thread, then do yourself a favour and do it (at least) once again. All moving averages will do. Sticking to your edge and controlling yourself it the main point of this game.

Good Luck!

Bluefish

I use MA cross to time my entries.

I use single MA as trend detectors, for entry i use RSI/MACD

Hi
I just read Tech Analysis for Dummies, they had a great section on Moving Averages. A system invented by Richard Donchian was mentioned using 5/20 SMA.
My way is to use 5/15 SMA and 20SMA setting on Bollinger bands. Then I want to apply this method to something volatile like GBP/CHF. I could have netted up to 50 pips using that method along with candlestick analysis in the first 3 hours today save that I'm holding the pair for the next couple of days since their is a buy signal with those moving averages on the daily also, provided that my stops aren't touched.
I'm excited about using it for scalping and longer trades.

MAs are great and I favor them more than other tool. A good combination is the 5/25/200(smooth, median). You will notice how price alternates from one side to the other of the 5MA. You will also notice the degree of separation between the 25MA and the 200MA.

My entry system uses a 9-sma and 30-sma and I enter trades when both ma's head in the same direction. Personally, I've found the 9-ma is too frequently respected by price to ignore it as a short term trendline.

The tricky part of a MA-system is exits...imho, MA's alone don't give good exit points. So, you have to determine exits that fits your own risk tolerance. One of my favorite trend-follower friends (Ryan Watts) suggests a fixed exit target of 5 pips...which I think is too small and inflexible. My targets are determined by the 0.618 fib extension off the recent retracement as an exit target. This gives you the flexibility to target exits based on market action, not just a fixed pip amount. However, I have no problem moving my break-even stop loss once 5 pips has been securely achieved.