Moving Averages:- simple or exponential

#1
hi friends!!

I have been using simple moving average for analysis.As we know exponential
are better for the current period & simple are more smoother & less false signals are generated through it.
I would like to know your personal experinces with exponential moving averages that wat were the results you all got while using them.
Wud be happy if few people cud share it with me.

Regards,
Vishal.
 

winstonn

Well-Known Member
#2
Hi techo,

it seems that you are using EMA's on daily time frames. So far so good!!!!!!!
every time frame has it's own market. From 1min charts for jobbing to 5min intraday to 60 min position trading to daily for short term to weekly for mid and long term.....ahh!!!

EMA's or any other similar tools based on them work in trending markets! but u will face lots of false signals called as whipsaws during range bound markets. You know, for 25 to 30%of time only markets trend in all time frames. Rest is ranging or volatile market.
Hey not only your EMA's signals but exit also determines ur profit to loss ratio and your overall longterm success. Also keep in mind MM.

well, there are some indicators which can help u LITTLE to avoid rangebound markets and than take the EMA's cross over signal. Like ADX can tell u not most of the time but sometimes as whether the trend has began.

On the whole just taking the trade on EMA's alone can be frustrating.
HOWEVER, with individual trader style, MM techniques...one can earn decent even with EMA's signal!

Hope some one else will donate their precious experience and words to you!

Take care,
AUM
Winston
 
#3
Hi Mr.Winston,

It seems you have specialized in Moving averages.

For the indian NSE stocks and F&O i apply Cross over of 14 and 45 EMA for entry of orders.
For Forex I apply 14, 26 and 45 EMA.

So far so good.

Please tell me the which one is the highly suitable DMA,s for the indian market and forex.

Thanks in advance

Sundaram
 
#5
I have been using EMA cross over for the past one year in intra day futures...I make use of 3 eMAs ranging between 5 and 200 depending on the situation....It is true that EMA cross gives more whipsaws in lower time frames to avoid it we can use larger time horizon and lower time frame and vice versa.....It would be better to confirm the signal with either RSI or stochastic...
 

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