Can you automatically trail a MA

[latimer75]

Hello trading chums,

I am new to trading and need some help.

Is it possible to trail a moving average as a stop automatically or does this need to be done manually?

I have asked this next question before, but need some clarification.

When someone says: -

"most reversals take place after five consecutive higher closes of five consecutive lower closes, and this tendency is valid for all time frames"

Are they actually saying that if for example you are on a 60 minute time frame chart and the last 5 hours have closed higher/lower a reversal may take place? I'm just a bit confused as to what the close refers to, it it a close at the end of the last 5 trading days or does it mean a close of the last 5 time frames you are in i.e. in a 15 minute chart the last 15 minute bars have closed higher/lower?

 

[Joey25]

.

When someone says: -

"most reversals take place after five consecutive higher closes of five consecutive lower closes, and this tendency is valid for all time frames"

Are they actually saying that if for example you are on a 60 minute time frame chart and the last 5 hours have closed higher/lower a reversal may take place? I'm just a bit confused as to what the close refers to, it it a close at the end of the last 5 trading days or does it mean a close of the last 5 time frames you are in i.e. in a 15 minute chart the last 15 minute bars have closed higher/lower?

It means a succession of closes like c5 < c4 < c3 < c2 < c1

For example: 110, 105, 98, 97, 94

The question you need to ask yourself is, "If I toss a coin and get five heads in a row, does this alter the probability of getting a head on the next throw?"

 

[latimer75]

I still do not really understand what you mean. Is a close on a 15 minute time frame chart every 15 minutes?

 

[Joey25]

I still do not really understand what you mean. Is a close on a 15 minute time frame chart every 15 minutes?

Yes - a bar chart or candlestick chart is what you need. They close every 15 minutes (or whatever else you specify).

 

[chrisbliss]

I think it's only possible to trail the MA when it's rising,
atleast if it's done the traditional way?
if the MA goes down price will not,
then it's exactly the same thing as a trailing stop,
just set the pip amount from the MA to price,
sort of. or please correct me if Im wrong