Moving averages

which are the best period moving averages to use for forex,as theres so so many different set ups? thanks

Think about the question you have asked.

If there are “so many different set-ups”, how could there be an answer to your question?

Ask 10 successful traders which MA’s they use, and you’re likely to get almost that many different answers.

Some successful traders will tell you that the best MA’s are [B][I]no MA’s, at all.[/I][/B]

Ask 10 famous teachers/gurus/mentors the same question, and expect maybe 20 different answers (just kidding).

You get the point — it’s sort of like asking: What’s the best flavor of ice cream?

There are no [B]BEST[/B] moving averages, but there are [B]COMMONLY USED[/B] moving averages like the
200, 100, 50, 20 Day moving averages.
Depending on the timeframe 10 or 5 day moving averages might be useful too. But as Clint said:

Some successful traders will tell you that the best MA’s are no MA’s, at all.

Indicators are always [B]INDICATORS[/B] and they should be treated as such!

Hey Louie123, it doesn’t look like you’ve got the answer you were looking for does it!

The other guys are right though, but sometimes it depends on what your trading method is, as different speed MA’s can be more or less useful depending on the other factors in your trading plan. I trade using pure price action on the higher time frames so my MA’s are quite fast. I like them fast so that they follow the price closely, in this way they can act as resistance and support. However, a trader who wants their MA to help them determine trend direction and nothing else, might use a slower MA.

Perhaps if you have your trading plan set out you could give us some more information. Traders with similar plans may be able to tell you how they have their MA’s set up (if they have any).

Otherwise, there’s nothing else for it but to read read read, and decide which type will be best for you. The best place to start will be the school of pipsology, but there are endless resources on this topic you can find with a quick search.

10 and 20 days :wink:

You need to find a system that fits your personality. If that involves moving averages, then great. But there is no magic bullet that is going to guarantee your success. You have to put in the work to backtest and figure out what works for you.

Take your choice…

Can I get that in a 36"x60" framed?

It’s BEAUTIFUL!!!

:smiley:

I do use MA’s in my trading, its one of my gears in the system, Although not 100%, they do give a indication, I have a set-up I use, and is posted here I think, using 6MA-s, that show a great indication of compression, which, to me, is a dinner bell for breakouts… They might not tell you which way its going to go, but Gives great insight that the market will move, and move fast, simply because the market does not enjoy being in harmony.

I wont reveal my full system, as its very good to me, but I already posted this here,

14 LW-MEDIAN-Green
14-simple-close–White
20-LW-Close–Purple
25-LW-close–yellow
30-LW-close–Purple
18-Simple-close–Red

Purple are my channels, depending on speed of market, i use as TP area, and set to reverse my position, ( Im scalping)
Red is also another good TP when it breaks all but White,

White > all = Sell
White < all = Buy

This works well, If you understand and follow S/R

I have it mastered now, as this is a main key to my trading…

it works for me, but of course, may not for anyone else, LOL

My drawdown for the night was .3 using this addition to my strat.

Wow! That’s a beauty!! Where is that chart from?

hi i use 9ema with the 21 wilders smoothing ma, on a 5min time frame, on the eur/jpy and gbd/usd i then get price entrys from gainscope and enter when the red 9ema passes either above the price or below it,and it does signal a strong reliable trend,but probably not the best haha, thanks

Your real question should be how do you guys use MAs to make a profit from the market.

Now that is the real question. What time period is not really important. Whether its simple, closed, exponential or the rest is not.

My first experience using a system was MA. I was not very good with it, but than it forced me to look at the charts. Not just see whats on the screen, but look at the charts. It thought me to read the charts.

So there you go, what you are looking for is not the secret MA or secret MA combination etc etc. Its how to use MAs.

It does depend on your strategy but if your talking in general. Like the whole population of traders what would be the top ones. It would be 20, 50, 100, 200.

Why?

Because most traders use them.

Since most traders use them it increases the chance of something happening to the price at those MA. Why does something happen at the 200 SMA on an end of day chart? Because millions of traders are looking at this MA all over the world.

It’s like daily pivot points. Why does something happen when they are touched? Because day traders all around the world have these little lines drawn up on the same levels as every other trader and there saying “When the price touches the R1 line i am going to buy hoping it goes to the R2 line”