Should moving averages be given much importance?

Beginner Questions
61

does it help to read the market condition? YES
does it help to profit? NAH

62

Speak for yourself. :wink:

63

I would say: is it a valid confirmation for your trades, yes, is it a valid trigger? no

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64

I think a multiple time frame high/low indicator is better suited to identify support and resistance and it’s dynamic. In the end traders will use what works for them as there is no holy grail, or we would all be rich.

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65

great explanation about SR Levels by MAs.
couldn’t agree more.

66

I also use moving average but in its default setting. Does this setting give you better return on average?

68

If you were a lady, you deserve a kiss from me.

69

I don’t know what your default settings are but just try fiddling about with them and see which you prefare - some people might use the 21 instead of the 20 but they look pretty much the same. I find the 8EMA and 20SMA suit me fine - I don’t think there are any magic settings though.
Sometimes the 50 or the 100 or 200 will act as s/r sometimes they don’t.
Sometimes Fibonacci works, sometimes it doesn’t.
I think that a lot of the time it’s what we tune into that gives us an edge.
Sorry I can’t be more helpful :wink:

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70

This is very true… I prefer to use Moving Averages 21, 99, 198, 236 etc… Any variation from what the crowds (Group Think….) of Retail Traders are using will improve your strategies from fakeout price Action…

Also… Think outside the Box!!… EMA21 Close (Green)… Over the EMA21 Open (Red)…

Price (Candle Close) only over your Moving Average… ie: EMA1 Over say an EMA34…

Apply these concepts to your charts and watch how it improves your MA Signals, even during ranging… Can be applied to any style of Moving Average…

Another general rule of thumb to make your MA’s more accurate is the higher the time frame the Shorter the Periods… The Lower the time frame the longer the Periods…

Hope this is of some help to those still floundering in this game… Enjoy.

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71

The default SMA does work. It’s all down to trader preference. The general rule is to look for sell entries if the candle is bearish below the 20 and buy orders if its bullish above the 20. Support and resistance will determine when the trend ends.

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