Why Moving Average? | Forex Factory

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Why Moving Average?

  • #1
  • First Post: Edited 5:18am Apr 17, 2010 5:02am | Edited 5:18am
Hi everyone. I have been thinking about the reason(s) behind our use of MOVING AVERAGES. Why do we use the parameters we use etc...?

Why do you use SMA instead of EMA,SMMA or WMA? And what is a EMA or SMA ( I don't mean the full of the abreviation), actually...what does it do?

why slow EMA, fast EMA and MACD SMA? Why is MACD not available in Fast and slow (SMA,SMMA or WMA)?

What are you tyring to achieve using SMA, EMA, WMA or even SMMA? What are these tools really designed for/to achieve etc...?

I know MOVING AVERAGES are basically used to average x numbers of candles, I believe there's still more. I will be happy IF those with vast indicator knowledge data base can help answer my questions.

Am onto something.
  • #2
  • Edited 5:39am Apr 17, 2010 5:24am | Edited 5:39am
Why do people use MA with all those crazy parameters?
And why do we use MA at all?

1) We like to play by the book.
2) Everybody else is doing it.
3) Chart looks pretty and prettier.

Nah!

I believe it is because MAs are made for simplicity.
I gives us a simplistic view of what's going on in the market by using averages.

SMA, EMA, WMA, etc... are just different ways of calculating the
averages. Supposedly, the way you calculate your averages can
influence how the chart looks like.

FastMA, SlowMA, SignalMA are for MACD.
MACD is simply moving average convergence divergence.
Nothing fancy.

If it is too technical for you, then I suggest you get a mentor.
  • #3
  • Apr 17, 2010 5:30am Apr 17, 2010 5:30am
If you need help with EA.
There is MT4 website.

However, if you really need help.
Please contact me by looking up my profile.
Remember, my services are not free though.

I do MQL4 and MQL5 EAs.
And if you need help converting MQ4 to MQ5, I can do that too.

Of course, this is not advertising.
I suggest you go learn MT4, MQ4 properly at their website.
  • #4
  • Edited 5:50am Apr 17, 2010 5:45am | Edited 5:50am
Quoting charlyher
Why do people use MA with all those crazy parameters?
And why do we use MA at all?

1) We like to play the book.
2) Everybody else is doing it.
3) Chart looks pretty and prettier.
1. does playing by the book helps you in pips hunting?
2. pretty chart(s) don't give pips either

Quote
Nah!

I believe it is because MAs are made for simplicity.
I gives us a simplistic view of what's going on in the market by using averages.

SMA, EMA, WMA, etc... are just different ways of calculating the
averages. Supposedly, the way you calculate your averages can
influence how the chart looks like.

FastMA, SlowMA, SignalMA are for MACD.
MACD is simply moving average convergence divergence.
Nothing fancy.

Can you explain a bit further (you are going where i want here):
Quote
SMA, EMA, WMA, etc... are just different ways of calculating the
averages. Supposedly, the way you calculate your averages can
influence how the chart looks like.

Quote
If it is too technical for you, then I suggest you get a mentor.

Its not and cannot(moving averages)be too technical for me. Am only trying to know more from 'experienced traders with voluminous data base on this. If i want, i could have gone over to metaquotes website to read up some articles but no......i want to achieve something better.

Quote
I suggest you go learn MT4, MQ4 properly at their website.

I am already. And I don't need an EA.
  • #5
  • Apr 17, 2010 5:51am Apr 17, 2010 5:51am
LET's TEST YOUR KNOWLEDGE.
TELL ME EVERYTHING YOU KNOW UP TO TODAY.

I WILL TELL YOU IF YOU ARE READY OR NOT.
I WILL SHOW YOU WHAT IS WRONG AND WHAT IS RIGHT.
  • #6
  • Apr 17, 2010 5:53am Apr 17, 2010 5:53am
NEVER be an ORPHAN in the forex business.
The price for trial and error is TOO COSTLY.
It is GOOD to have parents to teach you what is right and wrong.
Let their mistakes be your learning lessons. That way, it is cheaper.

Be happy if you have parents when it comes to Forex.
  • #7
  • Apr 17, 2010 5:56am Apr 17, 2010 5:56am
Quoting charlyher
LET's TEST YOUR KNOWLEDGE.
TELL ME EVERYTHING YOU KNOW UP TO TODAY.

I WILL TELL YOU IF YOU ARE READY OR NOT.
I WILL SHOW YOU WHAT IS WRONG AND WHAT IS RIGHT.
By what evaluating criteria?

why is MACD fast EMA slow EMA and MACD SMA? why not fast(SMA,WMA or SMMA) slow(SMA,WMA or SMMA) e.t.c....? do you know the answer?
  • #8
  • Apr 17, 2010 5:57am Apr 17, 2010 5:57am
Price for knowledge is not FREE and not CHEAP.

However, I will simply tell you if you are right or wrong in your knowledge.
  • #9
  • Apr 17, 2010 5:58am Apr 17, 2010 5:58am
Of course you can "HAVE" FastMA, SlowMA, and SignalMA of EMA, WMA, etc...
You need to program it.

You do need a programmer afterall.
  • #10
  • Apr 17, 2010 6:03am Apr 17, 2010 6:03am
Quoting charlyher
Of course you can "HAVE" FastMA, SlowMA, and SignalMA of EMA, WMA, etc...
You need to program it.

You do need a programmer afterall.
You've answered only one question and thanks.

But what about the rest?

i mean when you (you in particular) use SMA,EMA, WMA or SMMA, what are you trying to achieve?

You may think i don't know what am talking about but let time decide that. LOL
  • #11
  • Apr 17, 2010 6:03am Apr 17, 2010 6:03am
Quoting charlyher
Of course you can "HAVE" FastMA, SlowMA, and SignalMA of EMA, WMA, etc...
You need to program it.

You do need a programmer afterall.
Wow. It must be an amazing life to spend it on a forum begging for work. Your trading must be going incredibly well.
  • #12
  • Apr 17, 2010 6:04am Apr 17, 2010 6:04am
It is base on EXPERIENCES.
Long years of trial and errors and educations.

If you are stubborn and want to do it on your own, be my guess.
  • #13
  • Apr 17, 2010 6:05am Apr 17, 2010 6:05am
MACD is moving average convergence divergence.
You don't know the purpose for MACD, then you need real education.
  • #14
  • Apr 17, 2010 6:08am Apr 17, 2010 6:08am
Are you accusing, BIG MONEY MANAGERS as scam artists?
If they are so successful, why invest opm???

Hm???
Maybe, other investors should feel luck to have MONEY MANAGERS.
  • #15
  • Apr 17, 2010 6:08am Apr 17, 2010 6:08am
Quoting charlyher
MACD is moving average convergence divergence.
You don't know the purpose for MACD, then you need real education.
did i ask for definitions? i asked for the purpose behind the usage...
  • #16
  • Apr 17, 2010 6:10am Apr 17, 2010 6:10am
Investors should feel lucky to have money managers.
I mean, everybody is all busy with work and family.
Life is short enough.
Who would have the time to learn and know everything?

Thank God for money managers.
Don't go accusing money managers as scam artists.
Okay, a few rotten apples does not make an entire tree bad.
  • #17
  • Apr 17, 2010 6:11am Apr 17, 2010 6:11am
Quoting magnumfreak
Wow. It must be an amazing life to spend it on a forum begging for work. Your trading must be going incredibly well.
  • #18
  • Apr 17, 2010 6:12am Apr 17, 2010 6:12am
The definition is the purpose.
Perhaps, you need better education.
  • #19
  • Apr 17, 2010 6:14am Apr 17, 2010 6:14am
Quoting charlyher
Investors should feel lucky to have money managers.
I mean, everybody is all busy with work and family.
Life is short enough.
Who would have the time to learn and know everything?

Thank God for money managers.
Don't go accusing money managers as scam artists.
Okay, a few rotten apples does not make an entire tree bad.
Are you a money manager or a commercial programmer? Not saying you shouldn't charge for your efforts but in modest way.
  • #20
  • Apr 17, 2010 6:17am Apr 17, 2010 6:17am
I daytrade for living. And I also do programming on the side.

As of date, I am not a money manager.
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