Dear All,
Pls share ur views reg Role of MAs (Moving Averages) on Crude Oil and Natural Gas ..needs some guidance..
The MA (Moving Average) cannot be too hot or too cold; it needs to be just right.
The length of the MA greatly impacts trading activity and therefore profitability.
The length is an arbitrary decision,depending on the type of trader,but length directly determines the sensitivity of any MA.The lenghth determines how much time an MA has to respond to a change in price. It is a matter of lag time.This's simple but important concept : Shorter moving averages are more sensitive than long moving averages.
Regards,
VINOD. RPS
Pls share ur views reg Role of MAs (Moving Averages) on Crude Oil and Natural Gas ..needs some guidance..
The MA (Moving Average) cannot be too hot or too cold; it needs to be just right.
The length of the MA greatly impacts trading activity and therefore profitability.
The length is an arbitrary decision,depending on the type of trader,but length directly determines the sensitivity of any MA.The lenghth determines how much time an MA has to respond to a change in price. It is a matter of lag time.This's simple but important concept : Shorter moving averages are more sensitive than long moving averages.
Regards,
VINOD. RPS