Question about moving averages and timeframes

I was somewhere else about a system but I don’t remember where it was at. The setup was a bit confusing. For example, viewing a 15M chart, but using say a 60ema on a 4 hour time frame. I’m currently playing around with MT4, but I don’t see how I could set something like that up. I’ve also not seen such a thing talked about here at babypips before.

I’m curious if viewing a moving average based on another timeframe would be useful. Maybe it would give insight to the trend from a larger timeframe without switching windows? I’m also wondering if a moving average from different timeframe would simply be changing the parameters. If your on a 15M chart and want to view a 60ema from a 1H chart, then divide your period input by 4?

Any insight would be appreciated!

You are only fooling yourself.

Price is price.

It’s the same on a M1, M5, H1, D1, W1 or MN chart.

Best to stick with one chart and one time frame at a time.

Of course, if you have a DIGITAL COMPASS that’s different :smiley:

I can see what the EMA(50) is doing on 8 time frames and the compass tells me which direction the ma is sloping.

Or you might want to watch a bunch of pairs :wink:

Thats a pretty nice looking setup!

Yes, if used properly it is high profitable.

But, you don’t need the fancy indicators to make money.

I have written hundreds of indicators and still write new ones ( like the one that shows risk, reward above) but I say that all you need is a HORIZONTAL LINE to make money.

If you look closely at the chart, you’ll see HORIZONTAL LINES showing, support, resistance, a long entry trigger and a short entry trigger. What more do you need?

The problem with indicators is that they are NOT all created EQUAL.

There are different types of indicators such as trend or oscillators.

I prefer “gauges” that show me real time statistics such at range statistics, support/resistance statistics.

The other type of gauges tells me price position within a range.

Another type is a simple display indicator showing something like time/sales.

What more do I need? I need a way to alert myself to good trading opportunities when I’m away from the computer. I’m constantly missing good opportunities. The only thing I’m doing lately when I open MT4 is looking at what went on previously. I hate to say it, but I think I’m going to put my programing skills to work and try some EA programing.

On another note, and I may even start another thread on this, is about pivot points. Someone in another thread suggested to me using pivot points, but applying them to a chart in Oanda created a visual mess. But I’ve been reading about pivot points and they sound much simpler then whatever Oanda gives you, except that they seem to be geared for daily charts. I can’t get my head around pivot points in smaller time frames.

I do agree with your point about “what more do I need”. It seems like every indicator is redundant. MA crosses seem useful. MACD is similar to crosses and seem to be helpful when the MACD is crossing the zero line in conjunction with MA crosses, but overall these indicators are showing the same thing as far as signals to buy or sell go.

What’s the big deal about pivot points?

PP = ( High + Low + Close ) / 3.

I wrote a few pivot point indicators.

One plots the pivot of the previous candle on the current candle.

One is a pivot multi meter that indicates if price is above or below the previous candle’s pivot points.

And a bunch more…

You ever go fishing or hunting?

There’s a time for fishing… when they’re feeding.

There’s a time for hunting… when they’re grazing.

There’s a time for trading… when they’re lots of other traders trading.

There’s a good opportunity every hour. Some hours are better to trade than hours.

I am putting together a trading plan based on pivots points and trendlines trading on 15 min charts. I am trying to use candlestick patterns as confirmation. I look for risk rewards of 15/45 to 30/90 pips. I would like to add a moving average for further confirmation. What period Moving average would be appropriate for this type of time frame and risk reward goal? Simple or Exponential? I would appreciate any insight.

Thats a great risk reward goal. I’d be interested to know how it works out for you. As simple as it may seem, I can’t get away from the 15M chart for longer time frames. It’s like everything I’ve been learning is void on larger time frames. I also haven’t thought of candlestick patterns as a means for confirmation, rather the other way around.

The moving average smooths out the price action based on the number of previous bars you choose, and the EMA puts more weight on more recent bars as oppsed to the SMA.

From what I’ve been observing, a 1:3 ratio taking 30-90 pips on the 15 minute chart would discourage me. I could see myself being stopped out often. But as far as using a moving average in this case, I would use it to show me the current trend for at least the past 16-24 hours. So maybe an EMA between 60-100? this is all opinion from my newb point of view and the hurdles I’m trying to clear using MA’s myself though, so take it with a grain of salt…

Yeah, i’m finding that I am getting stopped out a lot. Perhaps I need to expect something more like 1:2. I was thinking lose 2, win 1 at 1:3 would be a good goal. I think I’m going to shoot for 25/50 type trades and see if I can’t win more than I lose. I do believe in establishing support and resistance levels (pivot points and trendlines) and then observing price action (via candlesticks) in these areas. I am going to experiment with an SMA around 50.

Type doesn’t matter. It really doesn’t.

Try EMA(5) for short term trigger and SMA(50) for directional bias.

NEVER TRADE AGAINST THE DIRECTIONAL BIAS!!

Look at the risk, reward and ratio in the chart.

You need better setups.

I am using support and resistance. The pivot point is my entry trigger.

Sounds like you’re on the right track.

Do you trade off the 5 minute charts or use them just for entries and exits? Whats going on in that chart? I see your pivot lines, which really don’t correlate to the candlesticks in that chart (yes, I have a very hard time with pivot points and fib lines). And all those candlesticks with such long wicks would make me wait for better opportunities. I would’ve done nothing on that chart.

Price is the same on all charts. DO NOT BE FOOLED BY TIME FRAMES.

There are not any pivot lines. There are trade trigger lines based on the distance of the pivot point of the candle that made new support or resistance line.

Those long wicks are money in the bank!! Buy low, sell high.