what is the best moving average settings for 5 min time frame SMA or EMA?
i am asking this question for scalping purpose, i want to configure moving averages to determine right trend direction.
if you have not already then read up on the differences between simple and exponential moving averages from a mathematical approach so that you understand the underlying difference.
As for which one is best, well that’s not a black and white answer. It totally depends on the trading approach which is being used. Scalping is a rather large area of trading by retail traders, and not the same as scalping on a commercial front who use algorithms (non manual approach)
I have no idea what trading approach you are using as I have never scalped and don’t intend to - although I have read about it numerous times (still waiting to find a profitable scalper assuming you are using the term scalping in the realm of a few pips here and there) *what scalping actually is has it’s own on going debate.
Personally, when I’m stuck between two possible ways to anayse price I use both in isolation and find out which one has the higher success rate. Then quantify why this is happening, which is why you need to understand both types of moving average from a mathematical point of view.If you cant quantify why something is actually working then it’s about the same as saying “you’ve been lucky” - not a term you really want to hear in trading as luck always runs out.
Ema 60 