Questions on EMA and EMA vs SMA | Forex Factory

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Questions on EMA and EMA vs SMA

  • #1
  • First Post: May 8, 2013 8:24am May 8, 2013 8:24am
Hi,

I have been studying a book and the author explains a way of trading that I would like to copy. He uses the 200 and 50 EMA. So far I used the QQE and Stochastics to assist me with trading and they have been very helpful. Now I would like to switch to the 200 and 50 EMA to try out this new way of trading. I have some questions about setting these up though:

http://i40.tinypic.com/ygjgl.jpg



1. In this EMA, what does the 'shift' do for you?
and 2. when would you as a trader want to switch to exponential from smoothed, which one would be the most helpful?



http://i39.tinypic.com/2zguv6c.jpg



1. If I want a 50 EMA and a 200 EMA, would I put those numbers in the 'levels' you see here. Or add two EMA's 50 & 200 separately and put '50' and '200' in the parameters? It makes the most sense to me that '50' and '200' are parameters and not levels. If that is the case, what do levels do for you than?


.
Argue for your limitations, and sure enough, they're yours. Richard Bach
  • #2
  • May 8, 2013 10:47am May 8, 2013 10:47am
The best way to find out is to try the settings on a blank chart.

The "shift" feature moves the average line drawn forward by the "number" of periods, or backwards if a negative value.

The Levels allow you to draw a parallel moving average line above for +ve number and below if -ve number by the "number" of pipettes you specify in the levels editor. Click add & change the level by highlighting the 0.0 with a left click and putting your own number in. You can add as many levels as you like, by clicking add each time. If you leave it at 0.0 then it will draw a line on top of the original ma.

You should get a moving average channel set with pips distance.
It never gets easier, you just get better
  • #3
  • May 8, 2013 11:06am May 8, 2013 11:06am
The whole discussion of EMA vs SMA comes down to personal preference and situational awareness. I can't imagine how a 50 period EMA gives any advantage over a SMA. On the other hand, a 5 period EMA certainly looks a lot different than an SMA. Try both and find out what suits you best; thats what I did.
  • #4
  • May 8, 2013 11:10am May 8, 2013 11:10am
Quoting Shabs19
The best way to find out is to try the settings on a blank chart. The "shift" feature moves the average line drawn forward by the "number" of periods, or backwards if a negative value. The Levels allow you to draw a parallel moving average line above for +ve number and below if -ve number by the "number" of pipettes you specify in the levels editor. Click add & change the level by highlighting the 0.0 with a left click and putting your own number in. You can add as many levels as you like, by clicking add each time. If you leave it at 0.0...
All right, I got it, you guys are awesome.

So the shift isn't really something you could go by, it only gives you an indication.

I'm gonna try it out, thank you very much!
Argue for your limitations, and sure enough, they're yours. Richard Bach
  • #5
  • May 8, 2013 11:13am May 8, 2013 11:13am
Quoting CodeMeister
The whole discussion of EMA vs SMA comes down to personal preference and situational awareness. I can't imagine how a 50 period EMA gives any advantage over a SMA. On the other hand, a 5 period EMA certainly looks a lot different than an SMA. Try both and find out what suits you best; thats what I did.
Yes this is true. The problem that I had was that I was working with indicators but never had a really good feel with them. So I started reading up on indicators. Some traders swear by SMA and other than the author of the book that I am reading someone on this forum also advised the 50 and 200 EMA. I am changing my way of trading now to see if these new EMA's and a new way of trading is going to help me. I found myself successful in trading but am hungry for some new input.

Thanks guys!
Argue for your limitations, and sure enough, they're yours. Richard Bach
  • #6
  • May 8, 2013 11:21am May 8, 2013 11:21am
I have read similar discussions and cannot understand how people get so carried away and emotional about such a simple thing. If someone is emotional, they are not ratiional. Trust your own judgment once you have done the research.
  • #7
  • Last Post: May 8, 2013 11:33am May 8, 2013 11:33am
Quoting pipsel
Hi, I have been studying a book and the author explains a way of trading that I would like to copy. He uses the 200 and 50 EMA. So far I used the QQE and Stochastics to assist me with trading and they have been very helpful. Now I would like to switch to the 200 and 50 EMA to try out this new way of trading. I have some questions about setting these up though: {image} 1. In this EMA, what does the 'shift' do for you?
Shift . . .
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY-H1-2013-04-04-000.gif Size: 30 KB
20 pips a day isn't too much to ask . . .
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