If moving average is an arithmetic average of closing prices over a given period can I put 365 as in days in a year and have arithmetic average of closing prices over 365 days in a year ?
Does it make sense ? I’ve wondered why put 100 and 200 why not 365 instead ? The longer the duration the more accurate isn’t it ?
If it makes sense I thought about putting it on dailies or if dailies isn’t big enough maybe weeklies. What do you think ? Anyone ?
haha well it kind of looks like it now that I look back at my post and realize that I totally forgot about the weekends and the holidays :34:.
so 200 SMA should be good enough ?
I was just trying to apply moving average that covers longer period on daily TF’s to get a more accurate reading not that I was trying to make money fast
nothing wrong to wish to make money fast, time goes by too soon
i wish i could tell THE recipe with certainty, i can’t.
why do you use MA’s?
they are not good triggers, they are not reliable s&r’s ie forget accuracy that you are after, they mess up the charts.
If there is a good reason for using MA’s, please share.
if you have to use MA’s, the Heiken Ashi Smoothed is less fussy, more lazy and of the same concept.
Just drop HAS on a -price also- naked chart and trade the colour changes. Can’t get any simpler and you’ll get the same success with using MA’s, maybe better and with great comfort (i have seen a HAS EA floating around the internet for free that can trade for you while you are on holidays with your girlfriend, can’t get any better).
A good reason for using an MA is when you need to know whether something has increased or decreased in value, on average, over a particular period of time.
If you need to know this information, or it is a required input for your strategy, then an MA is the perfect choice.
As far S&R goes I would agree. And in the vast majority of cases I would also agree about crossovers for entries. An MA is usually best used as a “filter” condition in a strategy, where it performs the simple function of trend definition. A single MA is almost always sufficient, using either a price cross with this, or the slope of the MA alone.
