A Moving Average Trading System

[sanagarwalsan]

Thanx.

I've been following 20:50 Moving averages on the tick by tick line chart for intraday.

Pls Comment.

 

[Neal]

Thanx.

I've been following 20:50 Moving averages on the tick by tick line chart for intraday.

Pls Comment.

What has been your experience using the 20 & 50 period moving average?

Wait a minute do you mean that you use this on an intra-day tick chart?

Then you must be trading for very small moves from a few paisa or a rupee??

 

[gandhiadg]

Re: A Moving Average Trading System-Price line interpretation and Valid Cross Overs.

re:3-13-39 mav trading system:

In this trading system, the crossover of the different period moving average has indicated to generate the enter/exit signals. I would be keen to know how the price crossover with the different moving average be interpreted in this 3-13-39 trading system. I would also like to be clarified as what can be considered a valid cross over signal.

Detailed clarification from traderji and senior members would be extremely helpful for a beginner like and highly appreicated.

thks.
a gandhi.

 

[Traderji]

Re: A Moving Average Trading System-Price line interpretation and Valid Cross Overs.

re:3-13-39 mav trading system:

In this trading system, the crossover of the different period moving average has indicated to generate the enter/exit signals. I would be keen to know how the price crossover with the different moving average be interpreted in this 3-13-39 trading system. I would also like to be clarified as what can be considered a valid cross over signal.

Detailed clarification from traderji and senior members would be extremely helpful for a beginner like and highly appreicated.

thks.
a gandhi.

Here are the trading rules:

Simple Trading Rules

1. When the 39 MA is moving up buy when the 3 MA crosses up over the 13 MA. and/or when the 3 MA crosses above the 39 MA.. When the 13 MA crosses above the 39 MA consider adding to your long position. Exit and stand aside when the 3 crosses back below the 13 MA..

2. When the 39 MA is moving down sell short when the 3 MA crosses below the 13 MA. and/or when the 3 MA crosses below the 39 MA.. When the 13 MA crosses below the 39 MA consider adding to your short position. Exit and stand aside when the 3 MA crosses back up over the 13 MA.

3. Only initiate trades in the opposite direction of the intermediate trend when the 3 MA crosses above or below the 39 MA, preferably after the 39 MA has already changed direction.

4. This 3:13 MA crossover will keep you trading in the trend with only a small lag and on the sidelines during corrections. The lag only becomes more substantial at reversals of the intermediate trend (a 3:39 crossover), a small price to pay at these uncertain times of trend transition.

Please be specific as to wha you would need clarification on.

 

[amarnath]

Hi all,

3:13:39 Maco system is any curve fittied for Indian scripts or Indicies . Can i know on what basics these MA are selected . why not one can use 5:15:50 to do same task how above MA's are choosen and whyit is useful than other MA's cross overs ?

 

[TradersEdge]

Hi all,

3:13:39 Maco system is any curve fittied for Indian scripts or Indicies . Can i know on what basics these MA are selected . why not one can use 5:15:50 to do same task how above MA's are choosen and whyit is useful than other MA's cross overs ?

No, this is not curve fitted for any market or index. This is just an example. You can very well try your own set of moving averages.

 

[amarnath]

Hi tradersedge,

Thanks for clarifications

 

[aarun3034]

Dear friends,
Which price is taken for plotting moving average indicator. Is it the closing price?

 

[amarnath]

Hi ,

By default most charting packages use closing price of bar for computing MA of the instrument .

 

[lokanathpai]

Has anyone used this trading system? What are the results?