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  • #21
  • Jun 21, 2013 4:09am Jun 21, 2013 4:09am
If u put condition that they can only be used alone then it would be hard to point at working system , best bet would "Dance" thread by Kostas and look how they use moving averages..cant remember if they use it alone or have other conditions.
  • #22
  • Jun 21, 2013 4:32am Jun 21, 2013 4:32am
Definition of moving average: one of a succession of averages of data from a time series, where each average is calculated by successively shifting the interval by the same period of time.

It implies that it averages out a sample of time, giving indication to what HAS happened. But we all know past actions are not indicative of future actions.

A very good use for ma's is for multiple timefarme analysis if using the correct settings.
Price always deviates from an average, the question is how far does it deviate and in what direction does it deviate?

If used correctly it can indicate a particular movement shifting into another type of movement based on MTF. This way it can 'indicate' which tf the retracement belongs to and if we are in fact in an impulsive move or not, as each TF takes control over the other TF's.

That is my personal view, also to mention that any and all oscillators and indicators ever made are based on averages, but the question is which averages do you use and why?
  • #23
  • Jun 21, 2013 4:59am Jun 21, 2013 4:59am
nope .

i'm using moving opposite , when price up think down , when down think up
  • #24
  • Jun 21, 2013 5:20am Jun 21, 2013 5:20am
Quoting Pipalicious
Definition of moving average: one of a succession of averages of data from a time series, where each average is calculated by successively shifting the interval by the same period of time. It implies that it averages out a sample of time, giving indication to what HAS happened. But we all know past actions are not indicative of future actions. A very good use for ma's is for multiple timefarme analysis if using the correct settings. Price always deviates from an average, the question is how far does it deviate and in what direction does it deviate?...
Thank you for bringing up this point about multiple timeframes , its indeed very effective way of looking at charts and I see others who built strategies based on this , whether it works in the long run I am not sure
  • #25
  • Edited 5:50am Jun 21, 2013 5:24am | Edited 5:50am
Quoting sandycarrot
{quote} 1- Wait for a retracement and then go long 2- Jumb on now and go long 3- Go short 4- look for a better opportunity believe me 1--4 = its all have the same opportunity to win and to lose,,depending on how to manage each individual (on the way )
you are absolutely right however I am aiming to tackle the first problem out of the three I listed earlier which is entries so some views on that chart would be very helpful ,
now if you had to make a choice on that chart only what would that be ?

I would really appreciate it if others could give their views too, there is no right or wrong here
  • #26
  • Jun 21, 2013 7:40am Jun 21, 2013 7:40am
clearly not many people are willing to show their hands!
anyway have a look at this equity curve and tell me what you think, this is a simple MA system
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  • #27
  • Jun 21, 2013 8:33am Jun 21, 2013 8:33am
I use EMA200 on 15m and 1h. They are the only indicators I put on all the time (I use EMA200 on 4h and stoc occasionally). I use no other indies.
This is how I use them.
I only sell when blue (EMA200 on 15m) is under red(EMA200 on 1h), no matter what.
I only buy when blue is above red.
I don't trade if blue and red are close within 50 pips.

An entry and an exit depend on PAs -- SR, TL, BRN...
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  • #28
  • Jun 21, 2013 8:40am Jun 21, 2013 8:40am
Quoting Forexgogo
I use EMA200 on 15m and 1h. They are the only indicators I put on all the time (I use EMA200 on 4h and stoc occasionally). I use no other indies. This is how I use them. I only sell when blue (EMA200 on 15m) is under red(EMA200 on 1h), no matter what. I only buy when blue is above red. I don't trade if blue and red are close within 50 pips. An entry and an exit depends on PAs -- SR, TL, BRN... {image}
so you use it for direction rather than trigger which is helpful but can we make it even simpler and use them to trigger our trades
  • #29
  • Jun 21, 2013 8:45am Jun 21, 2013 8:45am
Quoting shahroor
{quote} so you use it for direction rather than trigger which is helpful but can we make it even simpler and use them to trigger our trades
It can be done. I actually do it. For example, I do the so-called "touch trade" when the price touches EMA200 (either on 15m or 1h), using limit orders. But it hard to explain the method -- you need extensive knowledge about PAs...
  • #30
  • Jun 21, 2013 8:50am Jun 21, 2013 8:50am
Quoting Forexgogo
{quote} It can be done. I actually do it. For example, I do the so-called "touch trade" when the price touches EMA200 (either on 15m or 1h), using limit orders. But it hard to explain the method -- you need extensive knowledge about PAs...
is this tested to be profitable in the long run with defined entry exit rules ?
  • #31
  • Jun 21, 2013 8:53am Jun 21, 2013 8:53am
Quoting shahroor
{quote} is this tested to be profitable in the long run with defined entry exit rules ?
To me it is. However, I don't recommend to everyone unless you have the in-depth understanding of PAs.
  • #32
  • Jun 21, 2013 9:00am Jun 21, 2013 9:00am
Quoting shahroor
now lets look at this chart with 50 SMA, we dont really know what currency and what date and we're going to make a decision based on what we see only you have four options here 1- Wait for a retracement and then go long 2- Jumb on now and go long 3- Go short 4- look for a better opportunity please share your views there is no right or wrong {image}
I am going to requote this chart and would really appreciate your answers , you dont have to explain your reasons , just pick one based on your observation
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  • #33
  • Jun 21, 2013 9:01am Jun 21, 2013 9:01am
Quoting Forexgogo
{quote} To me it is. However, I don't recommend to everyone unless you have the in-depth understanding of PAs.
Thats refreshing to know someone is successful with MA trades, good for you my friend and thanks for this infromation
  • #34
  • Jun 21, 2013 9:39am Jun 21, 2013 9:39am
Quoting shahroor
now lets look at this chart with 50 SMA, we dont really know what currency and what date and we're going to make a decision based on what we see only you have four options here 1- Wait for a retracement and then go long 2- Jumb on now and go long 3- Go short 4- look for a better opportunity please share your views there is no right or wrong {image}

4- look for a better opportunity
Attached Image
if there is something you should keep secret,simply just save it,, so, just
  • #35
  • Jun 21, 2013 10:13am Jun 21, 2013 10:13am
I do it on 1h and need to see at least previous 1-week-long PA.
If you need explanation about the chart (PA), you shouldn't play with EMA200.
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  • #36
  • Jun 21, 2013 10:24am Jun 21, 2013 10:24am
Quoting shahroor
I do have my own view which I will discuss later however I would like to hear what others think about moving average systems , do you believe they have potential and why ? The aim of this is a constructive talk that would hopefully help someone

6 months ago I would of said moving average systems do not work, I was told last week by an FF guru these systems do not work but I disagree now because I have been trialling a crossover method for the last 4 months and what I have traded has been excellent, even today for example it has been very good.

AND I got the idea off a 9 year old girl lol because that how she trades or did
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #37
  • Jun 21, 2013 10:26am Jun 21, 2013 10:26am
Quoting shahroor
{quote} I am going to requote this chart and would really appreciate your answers , you dont have to explain your reasons , just pick one based on your observation {image}
looking at your chart and from just that information ,,,only an idiot or newbie would take on a trade
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #38
  • Jun 21, 2013 11:55am Jun 21, 2013 11:55am
Quoting billytt
{quote} 6 months ago I would of said moving average systems do not work, I was told last week by an FF guru these systems do not work but I disagree now because I have been trialling a crossover method for the last 4 months and what I have traded has been excellent, even today for example it has been very good. AND I got the idea off a 9 year old girl lol because that how she trades or did
good to see you having success with MA system thats very encouraging
with regards to your last comment does that mean you would look for a better opportunity option 4 ?
  • #39
  • Jun 21, 2013 12:03pm Jun 21, 2013 12:03pm
Quoting shahroor
{quote} I am going to requote this chart and would really appreciate your answers , you dont have to explain your reasons , just pick one based on your observation {image}
guys please dont complicate it with regards to answering my question, its not meant to test your skills or put you on the spot . I am not sure why people are reluctant to answer it , I know you guys are brilliant at looking at charts and thats why I need your view but this time looking at a smaller sample
by the way thanks very very much for the ones who answered really appreciate it
  • #40
  • Jun 21, 2013 12:07pm Jun 21, 2013 12:07pm
if anybody feels uncomfortable answering the question publicly please PM me with the answer
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