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I have a question. I'm a newbie

  • Post #1
  • Quote
  • First Post: Dec 6, 2005 8:55pm Dec 6, 2005 8:55pm
I've been paper trading for some time and been reading a number of books on the Forex, Technical Analysis, and this board. (Must say.. I have learned alot from reading this msg. board.)

Well, the question I have is what time fame on a Moving Avg. should be used for a 15 min., 1 day chart. It might sound like a dumb question, but the more I learn the better off I will be.

Thanks for your time.
Quoting budda
I've been paper trading for some time and been reading a number of books on the Forex, Technical Analysis, and this board. (Must say.. I have learned alot from reading this msg. board.)

Well, the question I have is what time fame on a Moving Avg. should be used for a 15 min., 1 day chart. It might sound like a dumb question, but the more I learn the better off I will be.

Thanks for your time.
Hi budda,
It only would have been a dumb question if you hadn't asked it. The only dumb questions are the ones that don't get asked.

There is no single answer to your question. A moving average can "average" as few or as many bars as you like, on any time frame. There are hundreds of possible combinations.

Perhaps we can give a better answer if you can tell us a little more about what you want to accomplish with the moving average. Don't be shy. We were all newbies once.

Dial
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What I use for intraday trading on the 15 min. chart is SMA (21, 7, 1) and the DiNapolli MACD (high). Keep in mind that I'm talking intraday. I never trade against these signals. And I'm hangin' in there.
JIM
  • Post #4
  • Quote
  • Edited Jul 20, 2007 10:42am Dec 6, 2005 10:21pm | Edited Jul 20, 2007 10:42am
Quoting diallist
Hi budda,
It only would have been a dumb question if you hadn't asked it. The only dumb questions are the ones that don't get asked.

There is no single answer to your question. A moving average can "average" as few or as many bars as you like, on any time frame. There are hundreds of possible combinations.

Perhaps we can give a better answer if you can tell us a little more about what you want to accomplish with the moving average. Don't be shy. We were all newbies once.

Dial
Hi Dial,

From a newbie newbie's point of view, i think it's important to tell or a newbie to know what are the different usages (is there such a word? ) of an MA are..

Not really referring to anyone here, but since I'm also learning, here's what I know:
1) MAs can be used as an Entry/Exit (using MA crossovers..).. For such usage, what would be the good combinations? (For this, I'd recommend MuddBuddha's since he's testing them)
2) For determination of trend's bullishness/bearishness - if the MAs are above the price, the trend is bearish, but if the MAs are below the price, the trend is bullish.. For such usage, I think most use 30, 100, 200 SMAs.

And if one wants to know why they use such combinations? Well, I can't answer for the crossover usage, but for item 2), here's what I learned:
30 - quarter of a year
100 - half a year
200 - a year

So what if it's a quarter, a half year or a year? Well, I really not sure.. maybe others can help me out here?

hope this helps..
been 2 years in the trading market world. its hard to initiates those lines and graphs..i keep guessing for almost a year..i think having patient to understand those threads its easier for us to understand how market works without guessing at all.
a moving average: its the average of however many bars/candles depending on the number used.

for example on a 15 minute chart.
what average price are you looking to get?

its a formula i use
N*x= t

meaning if you want to average an hourly period then 15x5= 60 minutes
correct? thats the average of 1hr

if you want to know the average price over a day then
15*96=1440 minutes (there is 1440 minutes in a day)


on a daily chart, what average price are you looking for weekly? 5 sma
monthly 22 sma (approx 22 trading days in a month)
yearly? 264 sma
AVT INVENIAM VIAM AVT FACIAM
Hi mate,

I am also quite new to forex. A lot of examples I have come across you Fibonnaci numbers for their MA's. (http://en.wikipedia.org/wiki/Fibonacci_number)

These numbers are 1,2,3,5,8,13,21,34,55 etc.

So you might pair 21 and 55 or 5 and 8. As usual their is no golden formula for the correct one to choose. It all depends on what you are doing and what you want it to do for you. So i recommend this as a starting point and from there play around with the numbers a bit and find what suits you best.
Quoting Noberg
Hi mate,

I am also quite new to forex. A lot of examples I have come across you Fibonnaci numbers for their MA's. (http://en.wikipedia.org/wiki/Fibonacci_number)

These numbers are 1,2,3,5,8,13,21,34,55 etc.

So you might pair 21 and 55 or 5 and 8. As usual their is no golden formula for the correct one to choose. It all depends on what you are doing and what you want it to do for you. So i recommend this as a starting point and from there play around with the numbers a bit and find what suits you best.
i would discourage that.

drawing lines in your charts attempting to predict price is dangerous.

moving avareages are lagging in nature, they wont be able to tell you anything, you cant already see as far as price movement. crossing of the averages only tells you that average price of X amount of time is now greater than average of X amount of time.

what does that do for you?
if you would have been looking at price and following by the time they crossed you would have been out of a profitable trade.

crossing means nothing on its own.
if you are using an average it should only help in observation not BE THE TRIGGER.

example: i use an average on the 5 minute chart
i don't pay attention to the average itself, however, i use it to measure thrust. and gives me an idea of general direction.

whatever your strategy is just remember that in the markets its ALL YOU.
YOU LOSE MONEY not your system
YOU DONT KNOW HOW TO TRADE. not false signal

so work on YOU. and observing, not a system
AVT INVENIAM VIAM AVT FACIAM
^^so wats better to use??
The candle stick chart? or the other indicators?

i mean which one alone is more effective?
Quoting faiez
^^so wats better to use??
The candle stick chart? or the other indicators?

i mean which one alone is more effective?
nothing is effective unless you understand it.

a chart in itself is an indicator, candle sticks are OHLC of price for a period of time correct?

however the market is binary buy/sell, so one attempts to profit by observing which orders are more prevalent in the market, correct?

more buy orders the more liquidity will be consumed moving the quotes upward.
you could use a bar chart as well and it will indicate you the same OHLC, or you could use a line chart.

the key is to devise a strategy according to your observations and your style of trading.

as far as indicators go, i advise you to learn to calculate the formulas by hand, and just ponder this. price CAN NEVER BE PREDICTED, but the behavior can.

if you really want to be succesful, UNDERSTAND the market and UNDERSTAND yourself. UNDERSTAND your strategy.

with every tick the market changes.
AVT INVENIAM VIAM AVT FACIAM
so..........One CAN make profits using only candlesticks if he knows his way around...
I have never traded with anything other than candlesticks, if i ever try anything else, it somehow doesnt work..I only use candlesticks and moving avg indicator.
Thanks for the answer...
It's not a dumb question J everybody asks themselves that question. The truth is that there is not just one answer for your question "What MA should I use?". From my experience I can tell you that I use 20 &50 EMAs plus 200 SMA for the daily chart. For the intraday I use 10 EMA & 200 SMA. Why? Because that was what I learned and it works great for me.
Hi,

I am a junior member and cannot start my own thread. Would like to know what websites can provide past US economic data.

E.g., Weekly unemployment claims, monthly unemployment rate, PPI...
It is not a dumb question J everybody asks themselves that questions. The truth is that there is not just one answer for the question "what MA should I use". From my experience I can tell you that I use 20 &50 EMAs plus 200 SMA for the daily chart. For the intraday I use 10 EMA & 200 SMA. Why? Because that was what I learned and it works great for me.
If you are confident enough to make money, you can take loans from banks or your relatives. After making a good platform you can return the loan and make a good career in this market.
Quoting diallist
{quote}Hi budda, It only would have been a dumb question if you hadn't asked it. The only dumb questions are the ones that don't get asked. There is no single answer to your question. A moving average can "average" as few or as many bars as you like, on any time frame. There are hundreds of possible combinations. Perhaps we can give a better answer if you can tell us a little more about what you want to accomplish with the moving average. Don't be shy. We were all newbies once. Dial
Even I have a question
I am looking desperately for a gold loan but the big banks are not approving it because of the gold quality that i have can anyone suggest a good lender that i can approach?
its a most friendly forum we have on online from all , feel free to ask any question you need to know , lots of senior traders and advisor in there with good mentality, i hope you will enjoy the environment.
generally we the traders always think for newcomers its more appropriate to trade in a demo account , but the knowledge we gain from demo practically not works in a real account , so micro account i prefer always.
Forex trading has a lot of analysis but I think the best analysis is the context in the market. If you can understand the sentiment of the market, you can easily make a profit.
Isn't all analysis about the sentiment of the market?
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