Moving averages do not show you anything that you cannot already see on the chart.. They maybe useful as some visual aid for beginner traders that haven''t trained their eyes yet and sometimes act as support and ressistance zones, although it is arguable. Everyone has probably gone through the ma crossover and/or pullback period of the learning path, but my humble advice is- do not rely on them solely, never.
Do you believe moving average systems work?
- #525
- Feb 23, 2018 9:53am Feb 23, 2018 9:53am
hi friends from forexfactory,
i saw this topic about moving averages and would like to ask a question. (please mention i didnt read all 27 pages so if you guys discussed this maybe yet im sorry)
i find out something really cool but im not sure if it would work because of the spreads but generally it should work on logical thinking
Strategy:
-20 exponential moving average
-everytime the candlestick (in this chart 4 h) closes below MA, open downwards order at closing price of candle before, and opposite if above
-stop is the closing price of the candle that has the open order and then go on with the next candle immidiately
i think if there is a little trende the strategy should make positive results
if its ranging it should get equal, because lets say he moves upwards the MA line and bounces back early, he first made profit and lost after that pretty nearly the same amount.... so all little trends (or big ) would be winner and all ranging market should have few losts or be equal
because of so much candle there would also be a spread to pay for every opening which im not quite sure if it would lead to a negative result too with ranging markets ?
if anyone has experience with something like this i would be glad to hear and disucuss about this strategy
regards
i saw this topic about moving averages and would like to ask a question. (please mention i didnt read all 27 pages so if you guys discussed this maybe yet im sorry)
i find out something really cool but im not sure if it would work because of the spreads but generally it should work on logical thinking
Strategy:
-20 exponential moving average
-everytime the candlestick (in this chart 4 h) closes below MA, open downwards order at closing price of candle before, and opposite if above
-stop is the closing price of the candle that has the open order and then go on with the next candle immidiately
i think if there is a little trende the strategy should make positive results
if its ranging it should get equal, because lets say he moves upwards the MA line and bounces back early, he first made profit and lost after that pretty nearly the same amount.... so all little trends (or big ) would be winner and all ranging market should have few losts or be equal
because of so much candle there would also be a spread to pay for every opening which im not quite sure if it would lead to a negative result too with ranging markets ?
if anyone has experience with something like this i would be glad to hear and disucuss about this strategy
regards
