Moving averages
Results 1 to 10 of 10

Thread: Moving averages

  1. #1
    Join Date
    Mar 2006
    Posts
    4

    Default Moving averages

    Hello all,

    I am currently working on a trading system but I wanted to get some input before I started incorporating this.

    My question is does anyone use 2 moving averages on their chart?

    If so what settings do you think are appropriate? I am currently working off 5 minute and 1hr charts.

    Thanks in advance for your help.

  2. #2
    Join Date
    Mar 2006
    Posts
    4
    You can use moving averages as crossovers or as trend confirmations.

    With crossovers, you want to use a fast moving average and a slow moving average. There have been many variations to what periods to use but some common ones are 5/10, 5/13, 30/62.

    It all depends on what type of trade you are looking for. If you are looking to catch moves before they take off, you should use shorter moving average periods such as the 5/10.

    If you are looking for trend confirmations, use higher time frames such as 30/62. When the 30 crosses above the 62, it means that trend is up and if it crosses below the 62 it means the trend is down.

    There are so many uses for moving averages and I'm sure others will explain their uses. This is just my 2 cents

    Hope that helps.

  3. #3
    BigPippin's Avatar
    BigPippin is offline The ***iest member of the FX-Men Superior Master Contributor and Member
    Join Date
    Mar 2006
    Posts
    911

    Default Types of moving averages

    Hi there,

    First of all welcome to the forum

    I would recommend that before you determine what you want the moving averages to do for you, you should first learn about the different types of moving averages such as the SMA, EMA and WMA.

    If you haven't already been there, you should read our moving average lesson at :

    http://www.babypips.com/forex-school...-averages.html

    Good luck with your trading!

    Cheers,

    -BP

  4. #4
    Join Date
    Mar 2006
    Location
    San Diego, CA
    Posts
    6
    One of the systems I use is called the "bunny cross" system. It uses the 5 and 20 weighted moving averages. There's alot of variations out there, but you can find a link to it on Big Pippin's blog.

  5. #5
    Join Date
    Mar 2006
    Posts
    6
    Big Pippin - i checked out the link and there's alot of great information there. I've been trying to trade with moving average cross overs but it seems like market has been in a range. are there situations where you would watch ma's and other's where you wouldn't even have them on your chart?

  6. #6
    Join Date
    Dec 2006
    Posts
    440
    in a choppy market moving averages don`t work, you tend to get what is termed as whipsawed, up down up down etc

    I`ve read it somewhere else in this forum, but if you use moving averages use them for when the market is trending.

    Find something else for when the market is moving sideways (consoldating), such as the rsi stocist, or MACD. have a play around and use a chartingh system with historica data, even tually you`ll find something you are confortable with.

  7. #7
    Join Date
    Dec 2006
    Posts
    3
    I am a big fan of moving averages.
    There are ways to minimize the whipsaws of slow market conditions using moving averages, TP and SL and money management rules. You have to play with them until you feel confortable to live trade, if you want, using confirmation of other indicators like rsi, macd, williams % or other custom indicators.

  8. #8
    Join Date
    Dec 2006
    Location
    Cairo, Egypt
    Posts
    327
    I like 5WMA and 10SMA. Test them, I think they are working fine for me.
    But they are not enough to enter a trade.

  9. #9
    Join Date
    Dec 2006
    Posts
    3
    Quote Originally Posted by DiegoG View Post
    One of the systems I use is called the "bunny cross" system. It uses the 5 and 20 weighted moving averages. There's alot of variations out there, but you can find a link to it on Big Pippin's blog.
    Bunny Girl Cross is Ok., but according with my experience it will not give you CONSISTENT profits, and thats what we are looking for. Better sistems are CATFX50 and Dolly, and they are free. Some people are using a combination of Catfx50, Dolly and Bunny Girl Cross in the same chart, one to confirm the other, with good success

  10. #10
    i am currently trading the 8 and 24 moving average cross over on the five, 15 and hourly charts and having good luck so far. but i am finding that i often miss them. does anyone know of software program that could alert me when they cross?

Forum Sponsors

Similar Threads

  1. How are moving averages used in trading?
    By geline in forum Free Forex Trading Systems
    Replies: 1
    Last Post: 06-05-2012, 08:06 PM
  2. Replies: 14
    Last Post: 05-08-2010, 02:01 AM
  3. Moving averages
    By MakeMoneyorDIE in forum Newbie Island
    Replies: 0
    Last Post: 07-27-2007, 01:32 PM
  4. Moving Averages and Aroon Oscillator
    By killertrader in forum Show me the money! [Swing Trading]
    Replies: 4
    Last Post: 07-02-2007, 12:05 PM
  5. Moving Averages on Metrader 4 software
    By dirk30 in forum Newbie Island
    Replies: 1
    Last Post: 03-20-2007, 02:35 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
"Many receive advice, only the wise profit from it."
Publilius Syrus