A Moving Average Trading System

linkon7 · #**201** 16th May 2009, 11:14 PM

Quote:

Originally Posted by Quakerman

Is the moving average trading system intended solely for day trading or can it be
used for long term investing as well? Thoughts anyone?
Thank you
Quakerman

it can be used on any timeframe.... specially long term investment... Only make sure u dont buy against the trend.

wait for a dip.
3 SMA, 13 EMA crossover with the 39 EMA in an uptrend is a good buy indicator.

Quakerman · #**202** 17th May 2009, 02:01 AM

Thank you Linkon7 for your response.

Do both the 3 and 13 MAs have to cross the 39MA b4
considering/making a trade?

Thanks again for your assistance.

linkon7 · #**203** 18th May 2009, 01:17 AM

39 ema gives the direction to trade.

13 ema cross with 39 ema is a sign of trend change... but be careful as there might be a whipsaw...so use macd for confirmation and use the 39 ema value as the SL.

if 39 ema is pointing up.... then use the 3ma and 13 ema cross as an entry

when the 39 ema remains flat there will be lots of choppyness.... avoid taking any positions...

Quakerman · #**204** 18th May 2009, 01:52 AM

Thank you, linkon7.

Why 3 13 and 39 instead of say 25 50 200?

Would you be good enough to explain.

Thank you

Quakerman

linkon7 · #**205** 18th May 2009, 02:11 AM

1,2,3,5,8,13,21,34,55...
these are fabonachi numbers and somehow these numbers are widely followed in our market. we use 3 as the short term and 13 as mid term trend indicator and instead of 34, we use the multiple of 3 x 13 = 39 to give us a better sense of the long trend.

Any combination can be used and there is no hard and fast rule. some use 1 ma as the stop loss along with 3,5,13 in a 15 min time frame....

puneet_gaur2k1 · #**206** 19th May 2009, 05:50 PM

Dear All,

Please answer the following :

How to set the Metastock Explorer so that it can scan the opportunities of MA Crossover for all stockt at a time.

Regards,
Puneet Gaur

billy47 · #**207** 25th July 2009, 08:05 PM

I have a question, I like the m/a system, very simple, some think if it's not
high tech, it's no good. Here's my question .. Aftering entering the trade,
and it starts moving, how far back do you put your following stop loss to lock in profits, without getting stoped out.
thanks..billy

linkon7 · #**208** 25th July 2009, 09:26 PM

Quote:

Originally Posted by billy47

I have a question, I like the m/a system, very simple, some think if it's not
high tech, it's no good. Here's my question .. Aftering entering the trade,
and it starts moving, how far back do you put your following stop loss to lock in profits, without getting stoped out.
thanks..billy

I place it at the low of the last 5 bars and keep trailing it till it is hit....

billy47 · #**209** 25th July 2009, 10:06 PM

Here's another question: Why do we use the 3ma, why don't we just
use price, since they both are very close to each other.
thanks again...billy

ankitgarg20 · #**210** 26th July 2009, 12:21 AM

Quote:

Originally Posted by linkon7

I place it at the low of the last 5 bars and keep trailing it till it is hit....

Linkon,
Are u trading this system live?
I have seen your thread of 70-1030 ema too and now this one....Ur options strategies too are posted....

Hw is ur exp with these ema systems? do u trade them regularly live?

Happy Trading

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The Following User Says Thank You to linkon7 For This Useful Post:
cbosein (18th November 2009)

The Following User Says Thank You to ankitgarg20 For This Useful Post:
linkon7 (26th July 2009)