What are your moving average settings?

I think a better question is WHY do you use the settings you use?

5,10,20,21,50,180,200 is irrelevant....they are NOT dinamic support and resistance, they are NOT more effective at setting x as opposed to setting y.


a moving average "averages" x observations / N time period ......21 SMA gives you the average price for 21 closing periods be it daily or hourly or perhaps monthly. EMA, WMA, are just more fancy ways to give more weight to the current period.

to answer your question I use the 21 SMA on my daily chart because there are 21 days approximately in a trading month (20,22 are other approximates that calculate your Monthly average price on a daily chart) a 24 SMA on an hourly chart would calculate a daily average, dropping the first observation in the sequence and incorporating the last. EMA,GAMMA, WMA are more fancy, mathematical ways to weight the average, some even get you not the arithmetic but the geometric mean etc..... its AVERAGE over N observations.

in conclusion...whatever setting you use, make sure YOU understand WHY you want those settings, why calculate the average closing price for 5,10,200 or 180 WHY? how is this information relevant to you?

@the redlion

Completely correct. People need to consider why 'they' think the settings make sense/fit the way they trade, not the other way around.

In fact, as you can just trade on price action, indicators are completely optional and thus the settings are just preferential.

Mine have changes to M5 only....

20sma with envelopes 0.1 0.2 0.3 to judge range.
42sma

I have moved to judging fast trend with a 42/20 cross, but don't enter on a cross.

Also 200ema and 500ema to judge slower trend.


Why these settings, well it works big time

Market without my ma's seems completely random to me, I'm creating a dynamic map,where i know what the odds are for all setups.

I use the 10 ema and 30 ema price breaks. Also IB and OB breaks with trend. Stops are previous swing high or low.

Sounds about right. As mentioned, I use 28 and 12 ema's especially on the 15 min chart

A nice example - yesterday on GBPUSD - first checked the daily - looked nicely set for further upward momentum. Then check the 15 min chart to look for a nice entry point - couple of nice bounces off the 28 ema at 2.30pm and again at 4.00pm (GMT) would have been great entry points for a successful buy trade (I took 40 pips) .

it is like this:

john: what do eat to keep alive?

tom: bread and milk

john: how much bread, what brand of milk?

tom: three pound break, walmart milk

john: nice, i'll do that and live

gosh, anyone cares to ask what else tom eats and why? or ppl really believe that the same bread and milk can keep you alive well and long?

Well, that's an odd comparison. Try this one.

----------------------------------------------
A new trader asks three experienced, profitable traders a question:

Q: What indicator do you use? What settings?

Trader A: Indicator 1 with X and Y
Trader B: Indicator 2 with a,b and c*2
Trader C: Indicator 1 with settings X^2 and Y-3 (Btw, I hate Indicator 2 as I've lost loads with it)

Q2: So, how do you all make money if you use different indicators and settings?

{The traders look at each other, shrug and turn back to the new trader}
All: We all learned how to trade!

I've simplified more


M1
9SMA
120sma
Envelope 120sma 0.07% 0.14% 0.20%



That's a PERFECT Example, anyone else see it ??

Hello Everybody,

I am new to forex factory. I have a magic moving average settings

Disp MA ( Open 119, -4)
Disp MA ( Open 130, 6)

Change type to Wilders .

Any body help me to code in mt4 with buy and sell signals on crossovers.


Thanks

3 thin EMAs (with periods 10, 20 and 50) and 2 bold SMAs (with periods 100 and 200).

I use 5EMA for the momentum and mean revision part of method. For me it is the interaction around the 5EMA that I care about.

I seem, you are working with lower time frame! Isn’t? By the way, I work with EMA 20 & EMA 50.

I use roughly the 4:15 PM EST price to decide on pair ownership. So the 5EMA would be the daily at the time.

I don't know if this is any help to you because I cannot see your trading systems, but allow me to discuss some logic and then you can check it for yourself.

First of all, what does moving average 50 or 200 or 21 have to do with anything? What is it aligned to? Did you just put it on your chart, or was there a specific mathematical reason? Let's pretend you trade 1HR charts, since I have seen them referenced. You put a 21, 50, and 200 moving average on it. This means that you want to trade the 21 moving average signal. The 21 applies to the 1HR chart. The 50 applies to the 2.38HR chart, and the 200 applies to the 9.52HR chart. Are those the other charts you want to track?

A better moving average set might be: 21 for the 1HR and 84 for the 4HR. Or, perhaps you want to use smaller multiples. The key point is that whatever moving average you use should be a factor of 21 or there is no alignment. Of course, if you are using custom time frames, like 2.38 or 9.52, you can ignore that advice. That also only applies to this example. Maybe 21 is not the correct moving average to be using?

Nearly every indicator is written against moving averages. Let's say you want to add an indicator, like CCI. I am not sure what period meta trader uses, but it is probably 14. So, you are trading the 21 moving average with an indicator that is trading the 14 moving average and you wonder why the indicator does not work on your template. Try the 21 period? since that is what you want to trade.

I attached a screenshot to show what I discussed. The first indicator is CCI 14, the second is CCI 21, and the third is CCI 84 (4HR chart). Yellow chart line is 21 moving average and blue line is the 4HR chart 21 moving average. The vertical lines are at the point where price crosses the 21 moving average, or in other words, your entry. The magenta lines are half value moving averages to act as trend lines against the CCI signal line. They can be any value you want. You can even use Bollinger bands if that is your choice. I added one to the bottom indicator as an example.

If you might want to only trade the vertical movement in your favor, perhaps enter when the 21 CCI crosses 0 and exit when it crosses the magenta line. If you want to swing trade, perhaps use the 84 CCI yellow/wheat crosses. Or, it looks like yellow/magenta helps confirm some of the 21 signals. Maybe a mix of both? Up to you to decide how best to use it, but hopefully this helps show the difference between picking moving averages out of the air, or choosing to align them. The idea of using oscillating indicators is to help find apexes in price movement. They cannot do that if they are not matching your selected moving average value. If you really think indicators do not work, lol, then don't use them. Just understand there are many patterns drawn in the market. If you can decide the pattern you want to trade, and align your indicators to trade it, you should improve your skills. Good Luck.

If your "Magic MA" system works on your platform for whatever reasons, stick to it. It might not work for all asset classes and time frames and might not work on MT4, for one what parameter is -4?.

You may try this Moving average indicator and show us your results.

I've always found the 200, 50, and 20 simple moving averages to be helpful. The 200 for the trend and it acts as a support or resistance on many pairs. I conclude the banks use these.

One of my rules:

NEVER enter a trade when the DXY is hovering around the 50 simple moving average on the 15 minute chart. If it does, it's waiting on something. If there is no calendar news that it is waiting for, it's waiting for news.

This morning with the trade wars rumor was a perfect example. Never enter that trade on correlated pairs until the DXY is very clearly moving away from the 50 simple moving average on the 15 minute chart.

Cool setup; but I think these types of clear setups are very rare! It’s my personal observation.

yes i am already using 50 and 200 MA but we use indicators to cross check the BUY or SELL in your article you used first CCI with by default value along with 7 MA (here why you used 7 MA in second CCI you used 21 ok no problem but you used 10 MA and in third CCI you used 84 ok but here you used 42 MA why??? thats i can not understand)

in my view moving averages just an mathematical output just after end of any candle of any time frame since its use in forex pricing so this is very much popular and it multiple results create little bit different results markets moves to its fundamental destination always but its way to reach its destination need some technicals so moving average is one of the basic and popular mathematic equation. yes we mostly trade for big time frame
DKROCK...Thank you very much for your artical...its very much logical ....its a clue to trade to trade with trend under a mega trend DKROK is this possible that your will share your template with us to study this strategy accurately ....your template will help use the perfect values you used for MA and indicators .....

An oscillating indicator is designed by calculating moving averages and their slopes in whatever formula the indicator uses. While not entirely true, it is basically converting the candles into a moving average line. By applying a moving average to the indicator, you are creating trend lines on it that help to show the momentum of price compared to the momentum of the moving average. As an example I used moving averages discussed on the thread and then used their half values as trend lines inside the indicator. I have a thread that discusses my technique and how you can create your own template, so I will not make a long explanation on someone else's thread.