Which moving averages do you use in your trading systems?

Which moving averages do you use in your trading systems?

  • 5 DMA

    Votes: 3 23.1%
  • 10 DMA

    Votes: 2 15.4%
  • 15 DMA

    Votes: 3 23.1%
  • 19 DMA

    Votes: 0 0.0%
  • 20 DMA

    Votes: 10 76.9%
  • 25 DMA

    Votes: 0 0.0%
  • 30 DMA

    Votes: 1 7.7%
  • 35 DMA

    Votes: 0 0.0%
  • 40 DMA

    Votes: 0 0.0%
  • 45 DMA

    Votes: 0 0.0%

  • Total voters
    13
#1
Almost everyone of us uses moving averages. But there's always a confusion as to what MA to use for short, medium or long term. So which one of these do you use?

As only 10 options can provided for a poll in Traderji, remaining options are in the other thread. Don't forget to check that thread.
 
Last edited:

DSM

Well-Known Member
#2
On daily charts, 20 EMA/SMA represents the approx. no of trading days in a month. Trading basis EMA is more to do with one's psyche as there may be preference to trade basis short term moves which can be captured on 3/5/7/10 (etc) MA's. The same can be used to trade intraday as well on 3/5 minute chart or swing trading basis 10/15/30 minute chart.

Almost everyone of uses moving averages. But there's always a confusion as to what MA to use for short, medium or long term. So which one of these do you use?
 

amitrandive

Well-Known Member
#3
Almost everyone of us uses moving averages. But there's always a confusion as to what MA to use for short, medium or long term. So which one of these do you use?

As only 10 options can provided for a poll in Traderji, remaining options are in the other thread. Don't forget to check that thread.
http://www.marketwatch.com/story/whats-the-best-length-for-a-moving-average-2013-03-13

http://tradingsim.com/blog/best-moving-average-for-day-trading/

Nothing can be achieved by a poll of moving averages.

There is no perfect type of Moving average or optimized period of a Moving Average.

The picture that emerges is one in which moving-average trend following systems used to work quite well, but which have steadily declined in recent decades.

It depends on your time frame of trading.

DSM has provided good thumb rules for moving averages.

The search indefinitely continues for the optimal market timing indicator or indicators, as the market is dynamic and adapts itself to all the existing indicators.
 

DSM

Well-Known Member
#4
Rightly said. All indicators work in a trending market and give good returns. In a sideways market, they are all a disaster. One should only trade with what one is comfortable with.


There is no perfect type of Moving average or optimized period of a Moving Average.
 

prabhsingh

Well-Known Member
#5
You might see a halt or stoppage at particular Moving Average.For e.g 21 or 50 or 100 but alone MA can never be used for taking position in any trade because ultimately trend is your friend and it will continue once speedbreakers (MA) are crossed.
 

Jai Mata Di

Well-Known Member
#6
Most traders got confused with the concept of finding ideal single EMA/MA's Or a cross over. But, just think it deeply.
When anyone apply one single good Ema on FIVE different time frame charts it is almost equivalent to different FIVE emas in smallest time frame. Is not it? Then all becomes important in related time frames. :)

For example, just take a take example of one of mostly used 20 EMA/MA.
When you Apply same 20 EMA/MA on 1m, 2m, 3m, 5m, 10m time frames all are important. It is almost equivalent to 20,40,60,100,200 EMA in 1 m Chart which are all very widely known Emas for traders. :D

Traders need to look at higher time frames charts too, so looking at only 2 EMA(for cross over) in 5 time frame charts is equivalent to tracking 10 different EMA. That is also another reason, why EMA based traders failed to track the whole situation.
Fault is not exactly within EMA :p. We, have to use 5 or more different frames simultaneously to get the whole picture correctly.

Happy Trading.

H.C.
 

bunti_k23

Well-Known Member
#7
Most traders got confused with the concept of finding ideal single EMA/MA's Or a cross over. But, just think it deeply.
When anyone apply one single good Ema on FIVE different time frame charts it is almost equivalent to different FIVE emas in smallest time frame. Is not it? Then all becomes important in related time frames. :)

For example, just take a take example of one of mostly used 20 EMA/MA.
When you Apply same 20 EMA/MA on 1m, 2m, 3m, 5m, 10m time frames all are important. It is almost equivalent to 20,40,60,100,200 EMA in 1 m Chart which are all very widely known Emas for traders. :D

Traders need to look at higher time frames charts too, so looking at only 2 EMA(for cross over) in 5 time frame charts is equivalent to tracking 10 different EMA. That is also another reason, why EMA based traders failed to track the whole situation.
Fault is not exactly within EMA :p. We, have to use 5 or more different frames simultaneously to get the whole picture correctly.

Happy Trading.

H.C.
One of the best explanation i read on ma s...:thumb:
 

bunti_k23

Well-Known Member
#8
Almost everyone of us uses moving averages. But there's always a confusion as to what MA to use for short, medium or long term. So which one of these do you use?

As only 10 options can provided for a poll in Traderji, remaining options are in the other thread. Don't forget to check that thread.
I personally believe for short term swings use any ma or ema combo below 20 period also see sir pratapvb thread on trend and vwap ranges how he has utilized ma of lower and higher tf s ....gud luck learn first and trade second always .
 

badarivt

Active Member
#9
NSE's charting tool allows simple moving average (SMA) and volume weighted moving average (VWMA) to be plotted simultaneously. My general observation is if VWMA is above SMA, it represents a strong trend (MA backed by volume).
 

suri112000

Well-Known Member
#10
Conventional use of moving averages has become redundant and loosing proposition in trading. Examples of conventional use are :- 1. buy when price closes above a certain MA. 2. Buy when one moving average crosses another etc. These types of trades are more prone to whipsaws and thus dampening trader's psychology.

I personally use MA 10 and MA 20 on lower TF in unconventional ways.:D
 

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