The MA (Moving Average) cannot be too hot or too cold; it needs to be just right.

rpsvinod

Well-Known Member
#1
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
 

rpsvinod

Well-Known Member
#2
I m tracking with Some Combination of MA & SMA..on Crude..got this concept on here only..Based on this concept ..pls share ur thoughts..It 'll help to fine tune my learning.

Live Crude Move for Ref..



Regards,

VINOD. RPS
 
#3
I have done plenty of trading on optimised MA/MA crossovers etc in my early days. I find that there is no ideal MA. Optimise one MA on a given data sample and test it on different data sample, it will not be the best. On this data sample we will have different MA as optimised MA.

Just my 2 cents on MA.

Smart_trade
 

rpsvinod

Well-Known Member
#4
I have done plenty of trading on optimised MA/MA crossovers etc in my early days. I find that there is no ideal MA. Optimise one MA on a given data sample and test it on different data sample, it will not be the best. On this data sample we will have different MA as optimised MA.

Just my 2 cents on MA.

Smart_trade
Dear ST,

Thanks a lot keep on eye on my topic.I agreed ur view.Anyway Just i wanna test some combination on live market by live trade for better understanding the MA Concept.

Going to check on MCX CrudeoilMini Sometimes Crudeoil..'ve to track atleast 3 contracts periods..Lets go

Note : Nothing Invented by myself..This concept was discussed by some senior TJ members on here. Just live testing..already i was started a thread for live testing here. http://www.traderji.com/energy/92606-315-strategy-crude-oil-ng-trade-intraday-result.html

So something like again wanna live test..But the game is new.:D

Sterday I tried some trades based on this luckily worked out all on CrudeMini

Regards.

VINOD. RPS
 

rpsvinod

Well-Known Member
#6
Moving Averages are not the Holy Grail and are not created equal; however if used systematically and consistently, they tend to keep a trader on the right side of the big moves.

They are a totally technical approach(they rely on price only) and it doesn't matter which market you use them on. They work well in bull and bear markets and in both the stock and commodity markets; However they 'll whipsaw the trader in a sideways or trendless market. However, this isn't as big of a disadvantage as it might appear at first.

Usually the trader will quit just before the big move starts.Remember that you need to catch the big moves when using a moving average system or you won't win.:thumb:

Regards,

VINOD. RPS
 

rpsvinod

Well-Known Member
#8


Live Trade example on Crude on 27.1.15 for scalp trade.

Regards,

VINOD. RPS
Positive result based on this MA Set up on today crude move..Always wait for right set up to get..most of the trades should be positive..

Current high @ 10.20 2856:thumb:

Regards,

VINOD. RPS
 

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