best moving average periods for day trading

Discussion in 'Technical Analysis' started by gopu, Aug 6, 2005.

  1. gopu

    gopu Member

    Joined:
    Oct 15, 2004
    Messages:
    49
    Likes Received:
    0
    Trophy Points:
    6
    Dear All,

    please share yours best moving average periods for day trading.I seen one post here is that for 3,13,39.

    why we are using shorter peridos here? why not for longer periods? like 50,100,200 days for day trading.

    please share your views.

    regards
    gopu
     
  2. amarnath

    amarnath Guest

    Hi,

    There is no best or worst MA itself . MA is just avg of past price .
    Shorter the MA period faster it reacts to price i.e less lagging . Longer the MA period more lag it produce so it outfit for day trading aspects to consider it doesnt mean longer period MA are useless .

    Over optimization of system with MA are useless it just look good on left hand charts . Also dont look more conc to acheive prefectness with funky indicators .

    Indicators follow price always but its not necessary for price to follow a indicators . Hope it helps gopu . Wish you Good lucks with your trading .
     
  3. Traderji

    Traderji Super Moderator

    Joined:
    Jun 14, 2004
    Messages:
    1,825
    Likes Received:
    871
    Trophy Points:
    113
    Well said amarnath...
     
  4. swingtrader

    swingtrader Member

    Joined:
    Apr 1, 2005
    Messages:
    153
    Likes Received:
    9
    Trophy Points:
    18
    Location:
    Hyderabad
    All a moving average will do is smooth out the price flucuations, it will not do anything else like predicting future price movements. The best use of a moving average is to identify a trend. All the moving average combinations you hear about do nothing but identify various trends (short term, intermediate term etc). If you have heard about anyone having consistent success with a particular moving average combination it means that they have been using it for a while and are comfortable identifying trends with the combination. You can probably take any combination like 5,20 or 20,50 etc and over time with practice you can use it to trade successfully. But at that point if you give it a good thought all you have acheived is - you have learnt to identify trends and are trading with the trends properly. That is what is important (for trend trading).

    Everyone starts looking at indicators, trying different combinations of indicators. Sooner or later you will throw away the indicators or maybe just keep one or two and start concentrating more & more on the price action.

    --SwingTrader
     
    Essjay likes this.
  5. Debraj

    Debraj Member

    Joined:
    Aug 7, 2004
    Messages:
    122
    Likes Received:
    11
    Trophy Points:
    18
    SwingTrader,

    I could not agree more.

    Debraj
     
  6. hareshbhaip

    hareshbhaip Member

    Joined:
    Apr 2, 2005
    Messages:
    38
    Likes Received:
    0
    Trophy Points:
    6
    There is no any single sysytem to follow blindly in stock Market. You have to just test it as per your taste and if it fits with your requirements and turns into Profit, it will be best for you.
     

  7. amarnath

    amarnath Guest

    Hi all,

    You peoples seems misguiding newbies a lot . Pls dont consider it as any sort of attack on any one here . Trading with 100 % Mech systems has been proved to be profitable well . In few replies here ppls suggest to find a MA cross over that fits to traders taste ? it implies indirectly that trading with MA need discertionary aspects to consider always which seems highly misguiding to ppls trying to find 100 % mech systems . Pls guide me if i am wrong in my observation . Wish you all good lucks :)
     
  8. amarnath

    amarnath Guest

    It is better to say you are not aware of it that saying there is no single system to follow with mech aspects . pls dont get misguided your self
     
  9. amarnath

    amarnath Guest


    You mean trading with MACO systems always need discertionary aspects ??? can you define wat is trend in your terms
     
  10. AJAY

    AJAY Active Member

    Joined:
    Jul 14, 2004
    Messages:
    195
    Likes Received:
    198
    Trophy Points:
    43
    i appreciate the views of swing trader. I have been in technical analysis since 1995. workerd with each and every indicator. developed my own indicators in metastock. i am a licenced user of metastock pro 8.0, advanced get, wave 59, falcon and iris. with all the experience what i realised is what swing trader said is right. the only missing part in communication is that it is applicable to hardcore chartists who track markets full time with charts.
    the views of others are also respected.
    basically the money making in markets depends more on psychological aspects. charts only give a clue. if you go biased, then any thing is useless, whether it is macd,ma or any other mechanism.
    it is not that i don't respect the indicators. having worked days and nights on all types indicators what i understand is that experience it self removes the need to look for any indicator. hope swingtrader wnats to tell the same.
    WHAT I APPEAL TO ALL THE TRADERS IS THAT THE TRADING PSYCHOLOGY IS MORE IMPORTANT. BE LIKE A REMORA. BE WITH THE SHARK, DON'T GO AGAINST HIM. DON'T EXPECT THE MARKETS TO DANCE AS PER OUR TUNES. WE HAVE TO CHANGE THE TUNE AS PER THE MARKET MOVES.
    ajay
     
    iTrade and vmonu like this.
Loading...

Share This Page