What's a good moving ave to avoid whipsaw? | Forex Factory

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What's a good moving ave to avoid whipsaw?

  • #1
  • First Post: Sep 5, 2008 10:32am Sep 5, 2008 10:32am
I've been using 34/65 but it lags big time. I also used 2/4 but that only works in trends, not good for up and down movement.

what is a good setting that eliminates a lot of false settings?

thanks
  • #2
  • Sep 5, 2008 12:24pm Sep 5, 2008 12:24pm
  •  FxChi
  • | Joined Dec 2007 | Status: Cash Rules Everything Around Me | 749 Posts
If you can figure that out let me know. The only thing I can think of is use a longterm MA, and when price reaches a certain number of pips trade back to it. I.e. 800 SMA on 5 min chart on cable, and when it trades 1200 pips (I just made that number up), start trading back towards it, and when it crosses the longterm MA, odds are, it's a trend reversal and will continue opposite direction. Just my 2 cents.
"Wishful thinking dies hard." Igor T.
  • #3
  • Sep 5, 2008 12:33pm Sep 5, 2008 12:33pm
If this were public information, forex would be easy and everyone would make money. Whipsaws happen. Get over it. You can't predict noise with a stupid CCI indicator or anything else for that matter.

The only thing I ever heard about that was remotely close to this was Darkstar's stop hunting technique (apparently DS has moved on beyond FF) and his protege student mbqb (whatever his name is... MIKE) is tight lipped about dispelling any info on it (bound by legal contract, according to him.) So the idea behind it is to watch news releases (NOT economic report news releases, but just all forex related news) and there are times when excessive stop contracts are reported on certain pairs.... if those contracts are taken out, then huge "liquidity is found" as they say, and a move will occur.

Those guys are very tight lipped about this method and nearly all of Darkstar's posts were removed.
  • #4
  • Sep 5, 2008 12:44pm Sep 5, 2008 12:44pm
No such animal exists. Just be mindful of market position and only take crosses in the direction the market is going, and you will eliminate virtually all of them on any time frame. Most of the others will be eliminated, if you trade with a position size that you are comfortable with draw downs on, so you're not continually jumping in and out.
  • #5
  • Sep 5, 2008 12:59pm Sep 5, 2008 12:59pm
Quoting tdion
If this were public information, forex would be easy and everyone would make money. Whipsaws happen. Get over it. You can't predict noise with a stupid CCI indicator or anything else for that matter.

The only thing I ever heard about that was remotely close to this was Darkstar's stop hunting technique (apparently DS has moved on beyond FF) and his protege student mbqb (whatever his name is... MIKE) is tight lipped about dispelling any info on it (bound by legal contract, according to him.) So the idea behind it is to watch news releases (NOT economic report news releases, but just all forex related news) and there are times when excessive stop contracts are reported on certain pairs.... if those contracts are taken out, then huge "liquidity is found" as they say, and a move will occur.

Those guys are very tight lipped about this method and nearly all of Darkstar's posts were removed.
LOL T, no contract, just an agreement from someone helping me out of respect of his wishes. DS is one of the nicest most helpful people I had the pleasure to cross roads with. There are tons of his posts on this forum some that one has to dig for, but ALL that should be read.

Enjoy the weekend

Mike
  • #6
  • Sep 5, 2008 1:14pm Sep 5, 2008 1:14pm
50ema
100sma
200ema

use them as Support & Resistance levels
Trade what you see, not what you think.
  • #7
  • Sep 5, 2008 2:12pm Sep 5, 2008 2:12pm
Sorry for the bad info Mike.

Quoting mbqb11
LOL T, no contract, just an agreement from someone helping me out of respect of his wishes.
  • #8
  • Sep 5, 2008 2:17pm Sep 5, 2008 2:17pm
Quoting tdion
Sorry for the bad info Mike.
no worries T enjoy the weekend

no beer drinking smiley so this will have to do
  • #9
  • Sep 5, 2008 2:18pm Sep 5, 2008 2:18pm


Quoting mbqb11
no beer drinking smiley so this will have to do
  • #10
  • Sep 5, 2008 2:31pm Sep 5, 2008 2:31pm
To the OP - Thanks for the post - I forgot about the whipsaw song:
http://www.youtube.com/user/TradingTribe
In trading, there is no bullshit. You either make money or you don't.
  • #11
  • Sep 5, 2008 3:41pm Sep 5, 2008 3:41pm
While you can't eliminate all of it, you can eliminate quite a bit of it.
  • #12
  • Last Post: Sep 5, 2008 3:43pm Sep 5, 2008 3:43pm
Hey Rabid that's a don't kiss and tell answer.

My best answer is, stop trading. You throw the baby out with the bathwater, but you avoided those whipsaws!
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