Simple Moving Average - 20, 60, 200, which do you use?

Beginner Questions
1

When using the Simple Moving Average, do you choose trailing 20, 60, 200, or some other number? I notice the line can look very different depending on what number you choose.

2

Depends on your strategy, however there is no magic moving average.

3

What do you want to use the MA’s for?

4

The EMA 20 is my MA of choice. However note that its less about the MA and more about you use it
to read price action.

5

I use 200 on Daily just to see where the price is going…

6

+1 to Grix.
I use 20EMA solely.

You can get creative though- for example:
A 200 period D1 MA is quite popular. However, if you flick timeframes down to the H1, that 200 MA becomes the 200 period H1 MA. You can adjust your parameters, so that the D1 200 MA is shown on the H1 chart by simply calculating the needed input.

200 days = 4,800Hrs

If you pull up an H1 chart, and drop a 4800MA, you essentially just plotted the D1 200MA on your H1 chart.

Powerful.

Jake

7

I agree with everyone above. It depends heavily what you want to use it for. I use an 8EMA with a volume indicator to quickly scan the pairs looking for potential trades. above is long below is short. That’s for short term trades 30minutes and under. In my opinion personally for longer terms I found them in and of themselves mostly useless in forex. There are better indicators again in my personal opinion if you want to see what a currency is doing. I think down the road, with a little more experience, you would be better off concentrating on what is making up those averages and why, but that’s a subject for another day.

I’d rather use support, resistance, and a Zig Zag to see what price is doing much more accurate. But again these are my opinons, I know traders who use 1, 2, 3, 4 and 5 moving averages in combination or anything 3 period to 365 and seem to like them, but when I ask them what relevance does a 200 day simple moving average has; his answer was if it’s above you’re long, below you’re short. It’s pure gold if you use it with support and resistance. So I asked if you draw S&R what do you need the 200 sma for? He said just another confirmation. So there you have it. Your question doesn’t fall under the most of the time should do, or most of the time should not do, but under “Depends”