What do you think

This is a discussion on What do you think within the General Trading Chat forums, part of the Reception category; I needed to start somewhere I would say if you are on the trending side of your moving average and ...

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Old Jan 16, 2011, 11:59am   #1
Joined Jun 2009
What do you think

I needed to start somewhere

I would say if you are on the trending side of your moving average and your price action pulls back to an obvoious support resistance level. If you then wait for the next 5 minute candle to close and the price action is still headed in that direction you have as much chance of making a few pips there as anywhere

Not 100% full proof and there would be bound to be losing trades using that as a strategy

What does anyone else think?
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Old Jan 16, 2011, 1:43pm   #2
 
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Re: What do you think

I don't trade mas, but I'm aware of them. Obvious thing would be to look if a particular ma you are observing is flat, at a certain angle etc. If at an angle (round 45 may indicate a nice trend) your strat may be good, if flat or close to it there is no trend.

I've read somewhere that in the case of a trending market (and price coming close to ma) you wait for a candle to close above/below ma and then take long/short (long for upward sloping ma and vice versa). The idea behind it is that the price may continue to trend and your entry point is close to ma and with that comes lower risk (if you intend to close it because it closed above/below the ma opposite from your entry) Afterwards you stay in the trade as long as there are no closes below the ma (for a long) or above the ma (for a short). All this is a general view.

I guess you can't avoid some serious work trying to find success rate for different time frames, different mas settings, different kinds of mas (simple, exp. etc.), different markets...

Last edited by bedsit; Jan 16, 2011 at 2:03pm.
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Old Jan 16, 2011, 1:52pm   #3
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Re: What do you think

JtheD started this thread Thanks for those words of wisdom.
I agree there seems to be no substitute for practice and experience.

I just need to get som more!

Happy trading
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Old Jan 16, 2011, 2:07pm   #4
 
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Re: What do you think

Quote:
Originally Posted by JtheD View Post
Thanks for those words of wisdom.
I agree there seems to be no substitute for practice and experience.

I just need to get som more!

Happy trading
Thanks - you are spoiling me.

Seriously in order to succeed one needs to do some hard work - research. Also you need a good discipline, money management etc.
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