best moving average periods for day trading

gopu · #1 6th August 2005, 07:16 AM

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

amarnath · #2 6th August 2005, 12:10 PM

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 .

Traderji · #3 6th August 2005, 01:43 PM

Quote:

Originally Posted by amarnath

Indicators follow price always but its not necessary for price to follow a indicators .

Well said amarnath...

swingtrader · #4 6th August 2005, 07:17 PM

Quote:

Originally Posted by gopu

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

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

Debraj · #5 6th August 2005, 08:13 PM

SwingTrader,

I could not agree more.

Debraj

hareshbhaip · #6 6th August 2005, 11:02 PM

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.

amarnath · #7 9th August 2005, 01:15 PM

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

amarnath · #8 9th August 2005, 01:18 PM

Quote:

Originally Posted by hareshbhaip

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.

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

amarnath · #9 9th August 2005, 01:22 PM

Quote:

Originally Posted by swingtrader

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

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

AJAY · #10 20th August 2005, 10:32 AM

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

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