Which moving averages work for you?

Hi all


Which moving averages do you find are the most important on your chosen currency pairs?

An example of what I'm looking for is that a few traders on these forums say a 200 day ema can turn price when it is hit (or at the very least they will monitor their positions very closely as price approaches). Obviously if this is the case then a lot of traders are placing orders when price comes near to this MA.

Which MA's do you pay particular attention to?

Are fib numbers important on moving averages, if you think they are then please explain why?


cheers
FXP

Firstly in terms of fib numbers and MA .. I don't find any correlation between the two. The common ones watched are the 100, 200, 50, 34 ... and there was a university study that suggested the 25 EMA on the 1H charts was the most significant ... anyhow have a look at the above and play around with SMA and EMA settings.

Happy trading!

I use 3 and 7 EMA crosses to trigger my entry.

I use a moving average of 1. In other words PRICE itself which is way more important than an average of the same.

As far as using a 200 sma - how many times a year would a currency even come close to it to be of much use. For instance the last time GBPUSD was close/crossed over the 200sma was April'06. So then what caused all the twists and turns since. Oh thats right some other shorter sma. No not really, just good old supply/demand fundamentals and technical related buying/selling.

Although I don't use them as well, a better indicator might be Bollinger Bands since they show possible outer regions where price may turn back in towards a sma.

Everyone claims price turned at this or that sma/xma/wma except when it doesn't happen. Then they say of course it isn't 100%.

Price moves up with buying and down with selling based on a change in fundamentals (news) or previous support/resistance levels where there was buying or selling and not because a MA happens "this time" to line up there.

The reason I'm using this EMA is because it gives me the "sign" of unusual buy/sell. When 3 crosses 7 in a "strong way".. it means something.

Thanks for the replies.

It would be nice if anyone reading this posted which moving averages they use. If you have time and can be bothered please add a quick explanation as per the posts above.

cheers!

I use an 8 and 24 sma on a 1 hr chart. You can use either candles or bars. Together with a macd and or full stochastic for exits and it works good for me.

how about vegas's thunnel method? 2 simple moving averages, 144 and 169.
I, pesonaly, use 65 simple average just to see price moves.

I use 100 and 50 sma's on a 15 minute chart for gbp/jpy.
When Price crosses the 100 I buy or sell accordingly.
I then use the 50 ma for when the price retraces back to it
I may close the trade or buy more.

It generaly works well but you do get chopped to pieces every now and again when Price consolidates.

I just read in a book(it was writen in the '90) that japaneese ta usess 4,9,18 simple average for short term(intra-day) and for long term 13 and 40 simple average. Didn't write how they used this sma