Hi!
My first post! I’ve been a semi-succesful (winning) poker player for over a year but somehow I’ve lost my interest in that sport. But since I have this little investor living inside me I’ve been recently been reading about Forex and making myself familiar with a demo account.
Anyways… I think I’m going to be an intra-day trader, probably starting off with 15 minute charts. Does anyone have experience using AMA or AMA crossovers with another moving average in 15 min charts? I understand AMA is faster and more precise than EMA but still a lagging indicator, and probably mainly used as confirmation. Would it be good to use AMA and say… a slow SMA crossover with 15 min chart?
Remember that I’m still very green with stuff and been learning about forex less than a week so I probably know less than 1% of the stuff out there. I’m just trying to come up with some kind of a trading plan…
You know, I have never even heard of an AMA.
Something you should remember when messing around with exotic indicators is that all an indicator is is a representation of [U]CURRENT AND PAST PRICE ACTION[/U]. No indicator can tell the future, regardless of how “fast” it is.
You should think of each indicator like looking at price through a different lense. Some of them are colored, some of them magnify, some of them zoom out, but remember, they are all representations of current and past price action.
I use a great many indicators, but nothing fancy. They are just a tool, nothing more. Becoming a sucessfull trader comes from inside of you. You must change your way of thinking and reprogram your mind. If you cannot do this, no EMA, AMA, SMA, or universal space time static display indicator (j/k about the last one) can help you.
Happy pipping!
Thanks for your reply GBLilleyUSMC.
I understand the indicators are just tools, but one must use some tools for to be called a “technical trader”, aye? I’m somewhat used to calculate risk to profit ratios, probabilities and using a strict bankroll management strategy. I think that when you make a trade it’s like taking an “educated guess” in which you have to take every little piece of information currently available to you into consideration. Am I getting that right?
If you want to read something about AMA here’s a link to a little article about it:
http://www.forexfactory.com/attachment.php?attachmentid=7735&d=1154858708
I read the .pdf on the AMA. I must admit that it is very interesting.
If you can find a way to be profitable with this indicator that’s awesome. As it is when any trader is profitable from any system.
The only reason that I would not consider incorporating this indicator is because I don’t believe a lot of traders will be watching it. And it is hard to compare notes with other traders if they don’t understand what your indicators do. I prefer to stick to indicators that any trader out there would be familiar with.
I have a blog that details all of the indicators that I use every day.
the AMA looks interesting. At first i thought it was a modified JTHull Moving average but its something else entirely that i’ve never seen before. I just might try and code this up for tradestation this afternoon and try it out.
Thanks for your post and keep us up to date on your progress with this!