Are MAs Like 50/100/200 Important In Trading? | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Indicator -distance between MAs 16 replies

The art of Trading MAs 883 replies

Threads about Trading with MAs? 5 replies

EA that uses separation between MAs to open trades 1 reply

Mjollnir journal - Guppy, rainbows and other kinds of MAs 6 replies

Attachments: Are MAs Like 50/100/200 Important In Trading?
Exit Attachments

Are MAs Like 50/100/200 Important In Trading?

  • #21
  • Feb 3, 2010 6:30pm Feb 3, 2010 6:30pm
Quoting Scotty B
There's no need for me to post any charts. All I'm saying is that MA's, especially the ones you mention will be on the radar of most traders. Their only purpose is to give you a point of reference, or better stated, a price referance. The same is true for any price derived study. If price is moving up and approaching the 100 ema for example, the possibility exists that traders will take interest in that price level for selling purposes. Of course it's not cut and dried, you have to know whats going on in the market at present. If the market is overbought...
Hi Scotty

Thanks for taking time to explain again. I appreciated.
This time I got your meaning. You are very good!
  • #22
  • Feb 3, 2010 6:58pm Feb 3, 2010 6:58pm
pj have you recieved my email?
  • #23
  • Feb 3, 2010 8:19pm Feb 3, 2010 8:19pm
Quoting big_pipin
pj have you recieved my email?
Thanks, Nathan.
I will look into the thread "Battle of the Bands."
May the pips always go to you.
  • #24
  • Feb 3, 2010 8:44pm Feb 3, 2010 8:44pm
I use MA on my trading and i can say you can use any number to your trade 15,20,30,45,50,60,70,100,150,200...If you dont know how to use them coreclty you wont be postive on balance.My advice use MA wich you like,profesional traders use 50,100,200,300,you can find your MA`S and focus just on them...




Cheers and happy piping


Petar
"Buy on fear, sell on greed !!!
  • #25
  • Feb 3, 2010 9:05pm Feb 3, 2010 9:05pm
Quoting pj.waterloo
Hi Shamus

Thanks for the input.
Pls. refer the attached image.
Do you mean those "crossovers" indicated by no. 1, 2 and 4?
For no. 3, is it also a "crossover?"

P.S. Sorry, English is not my main language. I am also learning to master the trading terms.
P.S.2. If you may, you can post some charts to illustrate the crossovers.
Here is a quick screen of what I look for re crossovers. This is an SMA50 on H1 Globex JPY Chart (Disregard all the colored bar stuff as this is part of my VSA Trading system which is discussed at length in the VSA thread)

What I deem a trade worthy cross or successful cross as noted in the below chart is any cross of the candle through the sma 50 in which the following bar opens cleanly above the sma50 and closes in the direction of the cross ie up bar for long crossover reverse for short.

If you want the module that places the diamond, paints the bar on a confirmed signal (as per my conditions) and plays a custom alert based on chart just let me know via PM.

I hope this helps. I'll check back here and there to see if there are any questions.

http://content.screencast.com/users/...02-03_2152.png
The trend always ends.
  • #26
  • Feb 3, 2010 10:13pm Feb 3, 2010 10:13pm
Quoting pj.waterloo
Dear Senior Traders

I am still considering myself a novice in fx trading, thou I am doing it in mainly in part time basis for the past 2 years.

I recently have formulated my own trading method like many of you by focusing on using as fewer indicators as possible. Basically I am on candlestick formations (PA), TL, SL, RL on H4 & Daily TFs. Maybe or maybe not to include BB and/or MA.

About MA, I have read a number of articles mentioning the popular use of 50, 100 and 200 MAs. Would some of you explain WHY these MAs are chosen (popular)?

Is it...
Have to admit that I Skimmed the Thread and may have missed it if someone posted this already.

Disclaimer:
I would Never take a Trade based on MA's Only.
But, I do feel they offer some information.
EMA's
I seldom use EMA's {who cares where an MA falls if you survey All the Data {from the First Bar of YOUR Chart}That You Have?}
Weighted carries a little more {pardon the Pun} Weight for me.
SMA is, for me, the raw acid of PA in a Review of History.

So... Which Periods do I use in SMA?
Those that have relevance.

If I am looking at a H4 Chart & I have a 150 Period SMA Plotted, what is it telling me?
It's telling me;
The Average Price over the Last 25 "Trading Days"
A 25 Trading Day Average is not interesting to me At All.
A 24 Trading Day Average on a H4 Chart {144 SMA} is, however, quite interesting to me.
Why?
24 Trading Days is equivelant to 1 Month's worth of Trading. {6 Days / Week times 4 Weeks / Month. 6*4 = 24}

I utilize this mentality in ALL Period Based Indicators I view.
  • #27
  • Feb 4, 2010 12:38am Feb 4, 2010 12:38am
Quoting Bemac
Have to admit that I Skimmed the Thread and may have missed it if someone posted this already.

Disclaimer:
I would Never take a Trade based on MA's Only.
But, I do feel they offer some information.
EMA's
I seldom use EMA's {who cares where an MA falls if you survey All the Data {from the First Bar of YOUR Chart}That You Have?}
Weighted carries a little more {pardon the Pun} Weight for me.
SMA is, for me, the raw acid of PA in a Review of History.

So... Which Periods do I use in SMA?
Those that have relevance.

If...

Hi Bemac

Thanks for writing.
Pardon me due to English is not my mother tongue. I do not get most of your writing.

Among all types of MA's, SMA is your preference of choice?
You would use 150 SMA in your chart, due to 6 * 4 = 24 trading days in a month?
  • #28
  • Feb 5, 2010 12:26am Feb 5, 2010 12:26am
My chart shows 200, 150, and 100 ema. Look how well price respects these averages as support/resistance. Very easy to trade...
Attached Image (click to enlarge)
Click to Enlarge Name: ma.JPG Size: 177 KB
  • #29
  • Feb 10, 2010 4:05am Feb 10, 2010 4:05am
I think this polling can tell you the relative importance of MA in comparison to other technical tools in terms of general opinion.

http://www.forexfactory.com/showthread.php?t=218396

Hope it is helpful for you.
  • #30
  • Feb 10, 2010 6:39am Feb 10, 2010 6:39am
Quoting A-game
My chart shows 200, 150, and 100 ema. Look how well price respects these averages as support/resistance. Very easy to trade...
The problem is, you put only a part of the story, which is 30% from the movement of the market. And in that chart you can plot any moving average you can imagine, they will look perfect due to the trend of that pair. Please post the charts before that movement.
  • #31
  • Feb 25, 2010 8:27am Feb 25, 2010 8:27am
Quoting big_pipin
To help answer your question, I think the 100 and 200 sma's are popular is because 100 is 1/3rd of a year and 200 is 2/3rds of a year (out of 365 days), so if price crosses that number, that says that now price is on average over the last 100 days higher than it was the previous 100 days. Same with the 200. Not sure about the 50. I used to use a 30sma, because there are 30 days in a month.

The way I would trade is, basically I would short anything below 200 and buy anything that crossed above it, but it was clouding my judement so I let it go....
i tend to agree with you, big pipin.
just that i can't let go the MA
i think it does give one the sense of direction ?!
  • #32
  • Feb 25, 2010 11:11am Feb 25, 2010 11:11am
Quoting pj.waterloo
Is it good to incorporate MAs? Why?

All inputs are welcome. Thank you for your time.
FWIW, I gave my views on this here.
  • #33
  • Mar 1, 2010 10:53pm Mar 1, 2010 10:53pm
Quoting Sauron
The problem is, you put only a part of the story, which is 30% from the movement of the market. And in that chart you can plot any moving average you can imagine, they will look perfect due to the trend of that pair. Please post the charts before that movement.


There are numerous opportunities using the previously mentioned ma's in conjunction with price action. Please visually backtest, posting more charts is unnecessary.
  • #34
  • Mar 2, 2010 1:43am Mar 2, 2010 1:43am
If "visually backtesting" would work all the traders would be rich. You are inclined to see only the profitable trades and to skip the bad ones, the best example being the crosses of averages.
No problem anyway, I understand why you don't like posting the other side of the charts.
  • #35
  • Mar 3, 2010 2:00am Mar 3, 2010 2:00am
LOL! I made no mention of an MA cross, the MA's are a good guide to support and resistance thats all. Used in conjunction with price action they can give you many profitable trades. The reason i have not posted any more charts is because it is completely unnecessary as previously stated. If you cannot see what is there and how to apply it then i doubt i can help regardless of how many charts i post.
  • #36
  • Last Post: Apr 10, 2012 6:14am Apr 10, 2012 6:14am
Quoting pj.waterloo
Dear Senior Traders

I am still considering myself a novice in fx trading, thou I am doing it in mainly in part time basis for the past 2 years.


About MA, I have read a number of articles mentioning the popular use of 50, 100 and 200 MAs. Would some of you explain WHY these MAs are chosen (popular)?

Is it good to incorporate MAs? Why?

All inputs are welcome. Thank you for your time.
Hi P.J., Nice Veyron. : )

I use a number of EMA's. 5,13,50,200,800 all on a 15 minute chart.

Why? Because they tell you what the higher time frame charts are doing.

A 200 EMA on the 15 M chart tells you what the 50 EMA is doing on the 1H chart. Etc.

I also use the 5/13 crossover of confirmation. If you used it as an entry, it is very late. You can do much better entries.

The 50 and 200 also make excellent profit taking targets. Also if you happen to get a Pin Bar reversal thrown to one of them, you can Stop and Reverse.

Take care, and once again Nice Car.
0 traders viewing now