# Calculate, day Moving average

Hi Guys

How do you calculate the 200 day moving average?
How do you calculate the 10 day moving average?

I seen loads of strategy which state " Short - when below 200 day MA, then wait for price correction until price rises to 10 day MA, then when the candle closes below 10 day MA on the downside, the enter the trade"

I trade a 5 min chart, could you please show me/tell me when you would enter a short trade with the strategy above?

Thank you
Andrew

[QUOTE=“Andrewt;756404”]Hi Guys How do you calculate the 200 day moving average? How do you calculate the 10 day moving average? I seen loads of strategy which state " Short - when below 200 day MA, then wait for price correction until price rises to 10 day MA, then when the candle closes below 10 day MA on the downside, the enter the trade" I trade a 5 min chart, could you please show me/tell me when you would enter a short trade with the strategy above? Thank you Andrew[/QUOTE]

With your level of understanding, you’re clearly not ready to enter a trade. Go through the school & keep learning.

All the information that you have given refers to daily averages, it might tell you that you should be looking to sell from that point but once you drill down to the 5mins chart, there’s a lot of noise & there’s 1001 ways to get in to a trade. This disconnect between the daily & the 5mins charts is massive.

That’s a way of “selling the peaks in a downtrend”, Andrew.

It’s a perfectly good and valid principle, in itself (you’ve perhaps heard the saying “buy the dips in an uptrend; sell the peaks in a downtrend”?). But it’s not suddenly, magically going to present you, [I]on its own[/I], with a profitable trading method: the reality is far, far more complicated than that.

So do I - but I wouldn’t dream of trying to enter trades simply according to where the price is, in relation to a couple of moving averages.

I’m afraid Baz is quite right about that.

Many people purporting to advise aspiring traders seem to imagine (and/or want people to believe) that indicators have mystical qualities and that prices in the market will obey them.

I advise you to work through the school here, and then read two or three introductory, beginners’ books - before trying to do anything.

Practical experience is of value only if you know what you’re looking for beforehand.

Otherwise it’s all too easy to have a year’s experience which comprises the same week’s experience duplicated 50 times over, and that gets you nowhere: it isn’t possible to learn, that way.

I recommend the following books, for you, as a starting point …