Moving Averages

[commanderco]

I thought there were 4 numbers,

1.close
2.open
3.high
4.low

FOREX is a 24 hr continuous market, however your Data Provider may supply
an Open.
Check with them to find out exactly when they take their snapshots.
It is possible they snap at the begining & end of a NY banking day.
ie around 8am & 5pm EST

Bear in mind that if you use this Open your are marginalising Sydney, Singapore
Tokyo London & Europe

Depends entirely upon how you trade!

 

[philhackett]

Use a 50 and a 200 to show the Golden Cross or Dead Cross to show the direction of the market. Also try EMA at 13, 20, 50, 100. 200 to show you much the same thing.

Forex spends most of the time Range Bound so use a Keltner Channel to establish the width of the range together with an FX Trend indicator and a Macd or Dmacd. You may like to use a Stochastic set at 25 and 75 too. To confirm a breakout of the Keltner Channel use a Dema or Ema set at 14.

When the candles come out of Keltner and then retrace look for the FX Trend to cross the 50 line and also the direction of the trend. Always trade in the direction of the trend shown by macd.

If you are new, try to use a CCI @ 50. It will show you the big moves.

Phil

Can anyone comment on Moving Averages in the forex market?
I've traded using 10/20 smas and wondered if anyone had any tips
or advice on timeframes/strategy etc.

thanks

Saint

 

[( CAMEL )]

i hate moving averages , but i cant work with out it , becuse so many traders deponde on it , so i have to watch it carefuly


i do use 10 ,50 mainly and 100 very rarly

 

[commanderco]

I trade forex futures and I found it quite dificult to turn off ma´s even though I was not using them.

To me, fx is a mix of momentum & volatility and the thing to remember with momentum is
that if you extend it´s length well beyond your trading window it is really showing you trend.

If you conduct an exercise in analysing the number of UP/Down days, it will quickly become apparent to you that if ma´s are to work they must be on a longer time frame and the longer the frame, then the deeper the drawdowns.

My suggestion to any new fx trader is firstly determine your trading time frame and then select your tools
to suit.
If your frame is longer than swing trading, then your toolkit will include some form of trend measurement
( ma´s)