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What are your moving average settings?

  • #1
  • First Post: Nov 9, 2013 9:39am Nov 9, 2013 9:39am
Hi , It's me again. Who was posting "What is actual holy grail in forex" but eventually end up with stop looking for Holy Grail as it doesn't exist then went bank to basic. I can now catch the trend with moving averages. Personally, I use 100 sma 200 sma 50 EMA 200 EMA 800 EMA on H1 timeframe and trade only GBPUSD which I feel comfortable with it. and how about you guys trading with Moving Average?
I want to be rich.
  • #2
  • Nov 9, 2013 12:33pm Nov 9, 2013 12:33pm
I don't use MA's no more as they became an interference with my strategy however when I did use them I was using only the 200EMA and 20SMA and made some good trades out of them.

The thing that put me off MA's was I was using them as a indicator for confirmation of my trade entry and even though at times I got good entries from them, I also missed a lot of entries that the rest of my system confirmed. At the end of the day they are lagging indicators and can never confirm a trade that is unfolding here and now.

That being said, I know the 200EMA is a strong MA that many successful traders rely upon.

Hope that bit of info helps
To live a successful life, we must lose our fear of being wrong
  • #3
  • Nov 9, 2013 2:28pm Nov 9, 2013 2:28pm
Quoting eurusdthb
Hi , It's me again. Who was posting "What is actual holy grail in forex" but eventually end up with stop looking for Holy Grail as it doesn't exist then went bank to basic. I can now catch the trend with moving averages. Personally, I use 100 sma 200 sma 50 EMA 200 EMA 800 EMA on H1 timeframe and trade only GBPUSD which I feel comfortable with it. and how about you guys trading with Moving Average?

In my view, moving averages are the best indi's to use in forex trading. There are many indi's which come with the MT4 platform and there are others which a few clever guys have realised really work to a traders advantage - which one can download free. Why some traders want to trade without anything, completely blind, is a mystery to me!

I use certain key EMA's to confirm trend direction and are vital to bounce effective trades off. The correct EMA's and the correct combinations are the key. What so many small traders just don't understand is how they actually clearly represent dynamic (diagonal) falling/rising resistance/support levels.

Look at the two AUDUSD 1 hour charts below. The first one is empty of indi's and goodness knows how anyone thinks they can trade it!! The second one contains the MA's, (and a few other horizontal levels) which I use that clearly shows where price action "bounced" off the falling dynamic resistance areas. These confluence areas represent an ideal point to open a trade (white arrows)

Another very interesting thing which I'd like to share is that it's really vital to trade during the week on the best trading days. What I've discovered is that one can spend Monday to Wednesday simply watching the trend/s develop. If one simply trades only on Thursdays and Fridays one can not only avoid losing on a lot of hopeless trades but win enough pips on those two days for the whole week. Sounds incredible - but just try it - you'll see.

rgds

Jerry
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  • #4
  • Nov 10, 2013 4:10am Nov 10, 2013 4:10am
Quoting jmtini
{quote} Why some traders want to trade without anything, completely blind, is a mystery to me! {image} {image}
Everyone to their own!

Personally I can't rely on MA's anymore. But that's me and my style of trading and I trade successfully from my system.

Others like yourself rely on the MA's to enter and exit trades.

It all comes down to what one feels more comfortable with.
To live a successful life, we must lose our fear of being wrong
  • #5
  • Nov 10, 2013 4:13am Nov 10, 2013 4:13am
Below is a typical chart of mine and how it looks.

Clean and simple.

I enter and exit trades off SR with PA.
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To live a successful life, we must lose our fear of being wrong
  • #6
  • Nov 10, 2013 5:13am Nov 10, 2013 5:13am
I find that the 21 EMA often works accurately as floating support/resistance.
I would never just rely on the EMA, but I find it extremely useful for making decisions.
Look at most recent PA with EURUSD H1
Attached Image (click to enlarge)
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Please Do Not PM Me With Coding Enquiries
  • #7
  • Nov 11, 2013 2:46am Nov 11, 2013 2:46am
The EMA 20 works perfectly for me as a stand alone indicator. Marks dynamic support and resistance levels quite clearly and is popular with institutional traders hence quite reliable IMO
  • #8
  • Nov 11, 2013 7:28am Nov 11, 2013 7:28am
Quoting Danny Maina
The EMA 20 works perfectly for me as a stand alone indicator. Marks dynamic support and resistance levels quite clearly and is popular with institutional traders hence quite reliable IMO
Agree with Danny. I use both 20 & 200 EMA
  • #9
  • Nov 11, 2013 9:04am Nov 11, 2013 9:04am
For me I use the multi-time-frame approach.
It's 24LWMA ON H8 to show trend direction, for MT4 there's no H8 so to curve-fit that you multiply H4 by 2 that gives 24*2=48 in H4
So using a mtf MA indicator I see my H8 trend on all time frames (from H4 to M1).
Then on D1 to MN1 it's still 24LWMA.
After this 14LWMA on H1 to M1
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Let it turn and find your entry.
  • #10
  • Nov 11, 2013 12:01pm Nov 11, 2013 12:01pm
The actual used Parameters are not what it is about - it is about setting up and testing a methodology how you can get these values.

For example, if you always get good trading results if you take the parameters that worked best for the last 12 months - good!
If you get better live-trading-results if you take the parameters that worked best for the last 6 months - take this approach.

Optimise this "optimisation window" and find the best "trade window" (before you re-optimise your parameters) and that should be fine

Tough, there might be manual traders that would prefer "learning by doing". So if you want to follow this road, my method might not be what you are looking for.

-Darwin
  • #11
  • Nov 11, 2013 3:04pm Nov 11, 2013 3:04pm
I'm afraid that the truth is guys that you do need to have the right indi's on your chart. Why? Well because you can then ascertain trend strength, direction and most importantly a point where to enter a winning trade. Otherwise it's just guesswork.

I've attached GBPAUD chart from today. Very easy to see that it's buy trades only by distance between our vegas tunnel and the 28/12 ema's. A trade placed at rising dynamic support (arrowed) took 2 hours to yield 40 pips whereas a sell trade took 6 hours (6 candles) to drop the same distance - sweaty times!
Attached Image (click to enlarge)
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  • #12
  • Nov 11, 2013 3:37pm Nov 11, 2013 3:37pm
I use SMA 21 also + BB
$10K Live Account... 3 months investor testing!
  • #13
  • Nov 12, 2013 7:37am Nov 12, 2013 7:37am
I use 10,20 and 100 EMAs. When price is below the 100 I look for bearish crossovers on the 10 and 20. When price is above the 100 I look for bullish crossovers.
  • #14
  • Nov 16, 2013 4:58pm Nov 16, 2013 4:58pm
I use 7 simple MA cross with 3 simple MA to confirm entries and exits. I found it to be very useful.
Nobody ever went broke closing a trade in profit
  • #15
  • Nov 16, 2013 6:25pm Nov 16, 2013 6:25pm
The only thing you'll be catching with moving averages is a ticket to the poorhouse. Moving averages are a great way to get in and exit way too late.
  • #16
  • Nov 18, 2013 10:39am Nov 18, 2013 10:39am
Quoting Kanzler
The only thing you'll be catching with moving averages is a ticket to the poorhouse. Moving averages are a great way to get in and exit way too late.
I had to think about your post for a minute and I'm a bit confused. If I understand you, you're saying MA are a great way to enter, but not to use as a guide line to exit because exit is way too late? Can you explain what you mean the part about " but not to use as a guide line to exit because exit is way too late."
Nobody ever went broke closing a trade in profit
  • #17
  • Nov 18, 2013 2:36pm Nov 18, 2013 2:36pm
Quoting gp00053
I use 7 simple MA cross with 3 simple MA to confirm entries and exits. I found it to be very useful.


I think that sounds perfectly OK

I don't agree with kanzler about MA's being too late. It depends on the sma/ema value, surely! But the relationship between a slow moving and fast moving pair of moving averages is used widely to enter and exit trades.
  • #18
  • Nov 18, 2013 4:58pm Nov 18, 2013 4:58pm
Quoting gp00053
{quote} I had to think about your post for a minute and I'm a bit confused. If I understand you, you're saying MA are a great way to enter, but not to use as a guide line to exit because exit is way too late? Can you explain what you mean the part about " but not to use as a guide line to exit because exit is way too late."
It was tongue in cheek; it's a bad habit of mine that I use quite a bit of sarcasm. Moving averages are garbage, stay away from them. And before (you know who you are) comes over to advocate moving averages, we both know that you're not profitable, so please don't start as we've had this discussion several times before lol.

Quoting jmtini
{quote} I think that sounds perfectly OK I don't agree with kanzler about MA's being too late. It depends on the sma/ema value, surely! But the relationship between a slow moving and fast moving pair of moving averages is used widely to enter and exit trades.
No matter how you weight it it's still going to come out break-even over time minus all the money you lose in spread. And the fact that it's used widely should be already a big red flag. Anything used widely around here should tell you what doesn't work given the average profitability of ForexFactory gamblers.
  • #19
  • Nov 18, 2013 8:32pm Nov 18, 2013 8:32pm
Quoting Kanzler
{quote} It was tongue in cheek; it's a bad habit of mine that I use quite a bit of sarcasm. Moving averages are garbage, stay away from them. And before (you know who you are) comes over to advocate moving averages, we both know that you're not profitable, so please don't start as we've had this discussion several times before lol. {quote} No matter how you weight it it's still going to come out break-even over time minus all the money you lose in spread. And the fact that it's used widely should be already a big red flag. Anything used...
You need to take your meds. I have no idea who you are and care even less. You're entitled to your opinion! but not your own facts. Great strategy you're promoting. Everyone says go left, but were all suppose to listen to you cause you say go right. Like I said take your Meds and take a nap
Nobody ever went broke closing a trade in profit
  • #20
  • Nov 18, 2013 9:09pm Nov 18, 2013 9:09pm
Quoting gp00053
{quote} You need to take your meds. I have no idea who you are and care even less. You're entitled to your opinion! but not your own facts. Great strategy you're promoting. Everyone says go left, but were all suppose to listen to you cause you say go right. Like I said take your Meds and take a nap
Blah blah blah. Keep trading like you are, we both know you're bleeding chips and they're going straight into my bank account.
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