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 8:03am.
|