Moving Averages

kinsorted

Junior member
15 0
Hi all,

Still using a practice account until I feel comfortable. I understand how moving averages work, but I've tried a few different set ups and I cannot seem to get much value out of them.

How does everyone else find them?

Thank you
 

dbphoenix

Legendary member
6,952 1,244
MAs tell you where you've been. If you can't figure out where you've been without them, then by all means use them. Otherwise they're just clutter and will most likely prevent you from seeing something more important.
 
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dbphoenix

Legendary member
6,952 1,244
Now if you can avoid indicators, you will have saved yourself years of futzing with an infinite variety of settings (and of becoming a head-banger).
 

EnlightenedJoe

Experienced member
1,950 95
I find them clutter. But because so many people use them I felt I was missing the point somewhere.
Like 99% of the people, you are using them wrong. You use them to find market direction. Although the MA occasional coincides with the market direction, it cannot determine the direction.

Once the true direction is determined through other means, MA can produce more optimum entries and produce more profits.
 

EnlightenedJoe

Experienced member
1,950 95
I dont doubt that I am using them wrong. Hence the post and practise account.

How should they be used?
Standard teachings in TA will work. But TA doesn't show how you get the real market direction. For that, you can study yourself through hard work. Everything that have value takes work.
 
M

member275544

0 0
Hi all,

Still using a practice account until I feel comfortable. I understand how moving averages work, but I've tried a few different set ups and I cannot seem to get much value out of them.

How does everyone else find them?

Thank you
Hi, I use them to know where price is in relation to one
for example, if I look at a weekly chart I want to know where price is in relation to a 30 week average. If I'm trading above, im generally more bullish, trading below, more bearish. Its of course general, I use other criteria such as a break of a high/low however with regard to averages, hopefully that helps?
I only use one average on a chart and its always the simple moving average, and the setting applies to that time frame (eg 30 for weekly). Its very simple and very effective. Yes an MA will lag, but then so does price.
As soon as price is printed on a chart its history, an average is simply more history its how you use that information afterwards that determines its value and on the degree of history that's important to you.
what happened 5 minutes ago, or 1 day ago, or 1 week ago tells me nothing. what happens over a period of 5 minutes, a period of days etc will tell me much more in which case an average can be very useful and saves me an incredible amount of time
 

Kaeso

Established member
836 91
Hi all,

Still using a practice account until I feel comfortable. I understand how moving averages work, but I've tried a few different set ups and I cannot seem to get much value out of them.

How does everyone else find them?

Thank you
I have used them in various configurations in the past, but I now find they get in the way and I don't use them
 

kinsorted

Junior member
15 0
Ok, I'm still lost.

Not sure what the shop wins means etc. Not too bothered either.

Was curious to what MA works for people, because I haven't really seen much value personally for my own trading.

Sent from my HTC 10 using Tapatalk
 

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