Best Moving Averages for FTSE future?

FTSEBOY

Member
87 0
Hi all,
Have got very bored with the sideways trading today and have decided to call it a day. Being new to trading I am still trying out loads of indicators etc. One question that is racking my brains is what MA time period fits best on 1,3 and 5 minutes chart on FTSE futures. I know everyone has got their own unique style of trading but it would be nice to receive some suggestions. Also I am running CCI(20),RSI(14) and Williams %R. I haven't changed them for 1,3 or 5 minute as these are the default settings on E-Signal.
Cheers
FTSEBOY
 

mully

Established member
967 3
My first observation is that if you use the default settings found in every software package it is going to be very hard to have an edge as you will be reacting as hundred other 'traders' do as well. If you want to delve further into the effectiveness or otherwise of inducators try and get hold of Charles Le Beau "Computer Analysis of the Futures Market"
Secondly, I'm a great believer in the "KISS" principle- keep it simple, stupid. Price, Support/Resistance. Most indicators dont actuall work and are just a derivative of price anyway.
 

kevin546

Established member
699 0
All really depends how you wish to use them. 34 EMA works well on 1 -3 min charts as an indicator of trend only taking trades depending that the tool is sloping up or down possibly with a back up from either RSI or CCI. Same can be done with 13 SMA on 5 min chart trading in line with the SMA.

You could consider the adaptive moving average which increases its speed during fast trending periods. I use the 2 SMA for this purpose on 2 and 5 min charts.

Kevin
 

Grey1

Senior member
2,186 178
Settings in Moving averages are derived from the cycles... We are told market goes through the following cylces, 3, 13 period.. I.e 3 minutes, 13 minutes or 3 years 13 years... SO when both 3 and 13 period cycles are in harmpony and at the bottom ( long position ) then u take a position to ride the full cycle to the top on the longer time frame.. ( in anther word wait for the 3 period time frame to cross the 13 period time frame and both heading up and u have a buy signal.. remember u have to wait for both MA's to head up before u take a position )

The above strategy is called static MA cross overs where these settings are constants and donot vary from day to day ( not very clever as market character changes every day ..

Alternativley use a dynamic MA settings...go to stocks and commodities site and search for adaptive MA or dynamic MA settings...
 
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