HOW TO TRADE MOVING AVERAGES

[tricker]

can someone tell me which moving average period we should take when we are considering 5 minute time frame i.e. which one would give more accurate signal???

 

[4xpipcounter]

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Tricker, let me answer your question, share some background, throw some water on the fire of this thread, and even unintentionally stir up a hornet's nest--lol.

I posted 3 MA's. The answer is not what is right to give a more accurate signal. The answer needs to be how stable do you like your MA's. If you like making judgments on strong oscillations, then the lower or lesser candles covered in the MA measurement is for you. If you like it more stable, then the higher or more candles covered in the MA measurement is for you.

Notice the crossover in the upper left, and the sharp downtrend after that. Get ready for a jolt. That looks good on paper and is good for selling e-books, but is not practical. Use any 3 MA's you want on any TF, and then you will see the rarity.
Also MA's represent an average, of course. By the time the candle arrived at the MA the trend is half exhausted. Therefore, I conclude and through personal observation that MA crossover methods do not yield consistent profits. I would eagerly and sincerely stand corrected if someone proves me wrong.

The idea is to use the MA's as something that makes that market you're evaluating tradeable. Picture the MA as a magnate. Considering it is an average, then everything should gravitationally pull back to it, because the essence of it is a form of equilibrium.
Now we come to the part of making an MA tradeable. The nice thing is that it also can be backtested this method I'm showing. (Make a along story short, most methods cannot, regardless of how they may be advertised.) What you are looking for is a longer than usual drift from the MA. I plotted 3 MA's on the chart in order to prove my 1st point, and to show the difference in how they oscillate. My favorite is the 28, which is the purple, so I'll use it as the example. Currently, it has drifted a long distance from the MA. You can check the past history by noting how many grid lines is about the maximum it will drift from your MA, and then once it is met that criteria, then get ready to initiate a position.
The next thing to evaluate is the stochastics. I use the 5,5,5, but have been experimenting, of late, with the 9,3,4. When the candle has drifted further than normal, then look to the stochastics for OS conditions, and higher than usual for OB conditions. The setting on the stochastics are important set your OB/OS settings, not at 80/20. That is hardly OB/OS. Set it at 85/15.

You asked for the 5-min. I plotted the daily. The concept is the same. I plotted the daily for the AUD/USD. I am giving you a live signal using the very methodology I have espoused. This way you will see over a period of days how this reversal to the uptrend will evolve over coming days. After it has completely come to fruition, then you will be able to apply the same principles on your 5-min.

can someone tell me which moving average period we should take when we are considering 5 minute time frame i.e. which one would give more accurate signal???

 

[uniconsharma]

sir ji please tell me best trading software for intraday trading

 

[myamit]

Also MA's represent an average, of course. By the time the candle arrived at the MA the trend is half exhausted. Therefore, I conclude and through personal observation that MA crossover methods do not yield consistent profits. I would eagerly and sincerely stand corrected if someone proves me wrong.

Hello 4xpipcounter,

I was looking for some info on MA cross over systems and found your post. I really liked your post & argument. However most of them being true, I can show you a method that is purely based on MA cross over and generate regular and sizable profits.

Yes, MA cross over gives lots of whipsaws and also half of the trend is gone by the time cross over actually takes place but this method is much more safe and allows you in the trade for longer period.

I've developed MA crossover for Nifty 30-min timeframe and in last 18 months it has generated over 500% profits. Do let me know if you wish to have a look.

Also reason for posting this is to know and make my system little more efficient (specially by making an early entry).

Regards,

 

[Nifty Trader]

Hello 4xpipcounter,

I've developed MA crossover for Nifty 30-min timeframe and in last 18 months it has generated over 500% profits. Do let me know if you wish to have a look.

Also reason for posting this is to know and make my system little more efficient (specially by making an early entry).

Regards,

Hi Amit. Pl do post your Nifty MA crossover. I am sure it will be of interest to many. Thanks.

 

[satyen2073]

hi my amit
u post ur Hello 4xpipcounter,

I was looking for some info on MA cross over systems and found your post. I really liked your post & argument. However most of them being true, I can show you a method that is purely based on MA cross over and generate regular and sizable profits.

Yes, MA cross over gives lots of whipsaws and also half of the trend is gone by the time cross over actually takes place but this method is much more safe and allows you in the trade for longer period.

I've developed MA crossover for Nifty 30-min timeframe and in last 18 months it has generated over 500% profits. Do let me know if you wish to have a look.

Also reason for posting this is to know and make my system little more efficient (specially by making an early entry).

Regards, @ janu 2012 ,,, rite from tht time to today u not post this method i not know why ? if u not like to post thenwhy u said this here .................... and if u have some prob about post or metho ,, so plz ask here many many memner here wil sure help
ok
so plz send here ur method wait for tht,,,,,,,,,,,,,,,,,,,,

 

[satyen2073]

Bollinger bands are used to study the volatility of the stock.
Three bands are drawn. An SMA of 20 in the middle and and upper and lower band each of SMA +/- 2 Std. Devn.

Sharp increase or decrease in price will cause widening of the upper and lower bands.

Although getting buy/sell signals directly from a study of the bands is difficult, together with other indicators it will generally give good indication of a reversal. Especially double top sell and double bottom buy.

20 day SMA and 2 SD is used for intermediate trading. For short term 10 day SMA and for long term 50 day SMA is used.
helllooooooooo

plz more clear about this for intrday trade which b b sma use?

 

[timepass]

For using the Bollingerbands for intraday trading, please check the thread "Bollingerworm" by Columbus. Also check out "EMA Strip in BB" thread.