moving averages

Charles

Newbie
2 0
as a new trader,any info on moving averages or other indicators would be greatly appreciated!NOT SURE WHAT PARAMETERS ARE BEST.THANKS
 

Skimbleshanks

1
2,325 16
Hi Charles, and welcome to Trade2win.

I hope you've already got some good EOD (end of day) software, which will allow you to play around with moving averages.

What moving averages you use will depend entirely on your trading style - ie whether you're in for a long term hold or a short-term hold.

For long-term hold you may wish to use 20, 50 and 100 day moving averages.

But I suspect you're a would-be trader, and therefore you're probably more interested in short-term stuff.

10 and 20 day MAs are a good all-round number - but it's best to use them exponentially rather than simply (any good software will give you the option of displaying them as exponential moving averages).

Other combinations are personal preference, but I quite like using the commodity traders MAs of 4, 9, 18 and also the 3, 13, 39 MAs.

If you're using software such as ShareScope then you can have 10 different versions, which is what I do, then you can run through them all with a single click, and see what combination of MAs works best for that particular stock.

And a final point - I always have the quickest MA (eg 10 days) as green, and the next slower one (eg 20 day) as red - that means you read them like traffic lights: when green is on top it means go, and when red on top it means stop, etc. Simple and childish I know, but it works for me!
 

Skimbleshanks

1
2,325 16
No problem Charles!

It's what we're all here for - to compete against the markets and not against ourselves. Therefore by helping each other, we gain a competitive edge over the markets.

So if you have any other questions, please feel free to post.
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock