MA's vs EMA's

andrewmooton

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I've just being toying around with some strategies that involve MA's and EMA's.

They involve buying and selling when they cross each other.

I was just wondering if anyone had any thoughts about the pros and cons of each one.

Cheers,

Andrew
 
my opinion, and its only my opinion, its a waste of time.

i have tried it exhaustively many many many times. are you using other indicators as well??

personally, i wouldn't use MA and EMA by themselves
 
Yes I was just practicing day trading the dow using nothing but the cossover of the simple MA or exponential MA.

What would you suggest as an alternative?
 
Don't forget Weighted MAs. I played around with 21 & 55 on 1min for a while. OK when the market was trending. I think it's one of those things you look at from time to time.
Like all indicators, it's OK if you need something to "hold your hand" when you're in a trade.
I've used them for confirmation. ie. I wouldn't enter against the MA.
To be honest, I'm not keen on any indicators.
 
thanks for the links neil.

oatman, if you dont mind me asking, what do you use if you dont use indicators?
 
As per Oatman..I also am not keen on any indicators..this may not be specific enough to help you..but do you wish to try and think about strategies from a different slant..that is do you think any strategy that is highly transparent will make consistent profits ? Xovers in the main fall into that category...
 
everyone has tried moving averages of some sort. I once had a moving average optimiser and spent hours everyday finding a good combinition, sometimes using 7 or 8 moving averages at once, othertimes just using one.

markets change so often so you can't keep using the same MA combination for long
 
Andrew
I successfully day trade the Dow using only SMA's and achieve an average profit of 50+ points per day. It may not be the best strategy, but it is simple to understand and works for me.
Ultimately success is achieved by what works for you as an individual, not what does or doesn't work for others.

Iceman
 
I'd really like to know how you make 50 points per day on the dow Iceman.

I'll be your best mate if you tell me.
 
"highly transparent"..I mean anything that must be blatently obvious to the majority of onlookers
 
In answer to you question then chump, i'm not sure if such a system would give consistent profits.

I dont have enough knowledge or experience to answer such a question.

What do you think about it?
 
If you follow MAs blindly, ie entry and exit on the crossover, over the long term, in a trending market you would make good profits. But you would have to be in for the long haul, and maybe suffer large drawdowns :eek:
Then again, in a trending market you don't need much help :cheesy:
The difficulty is to identify the trend. Your time frame is important to your trading style.
I used Point and Figure breakouts for a while but as the market became less volatile, I was getting whipped all the time. False breaks were bleeding me. Too many small losses.
Had to change style:cheesy:

oatman, if you dont mind me asking, what do you use if you dont use indicators?

I generally don't use anything. The chart is a picture of the market. Different markets behave in different ways. You must look at their characteristics. I use trendlines to easily show support resistance/levels, new hilos, breakouts, gap fills all in conjunction with volume, time, depth of market as well.
Which market are you looking at? Study it and you'll see it has some characteristics that repeat themselves. Put an MA on and follow it. It doesn't matter if it doesn't work. It makes you concentrate.
Just look at one instrument and you will get a "feel" for it.
Good luck, let us know. ;)
 
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