Moving Average for Day Trading

[rxs0005 10]

Hi all

 

can you guys suggest which Moving average crossover is a relevant indicator to open a position in an intraday chart

 

What type of moving average ( Simple / exponential ) and what period is most reliable based on your experience.

 

thanks

 

cheers

 

rxs0005

[zapisy 10]

Hi RXS0005

 

There is no setup that will be valid today and 1 week from today.

 

If you backtest a strategy with any of the average cross, it will not, or make really small profits - commission.

 

Frankly... average cross can not be taken as the main entry point for your trading plan...

 

But, if you really want to use the average, then it all depends on what you trade and how.

If you position trader during the day, then longer period is a must; shorter for scalpers.

 

Even 200 days average can be used as the entry signal, but most important is money management,

and filters, that will keep you out during choppy markets, because the averages loose there most.

[Trendup_ 10]

I will recommend all posts by Walterw, about VMA. You’ll find charts, videos and exhaustive study, brilliant contribution by the Chimp.

 

cheers

 

Hi all

 

can you guys suggest which Moving average crossover is a relevant indicator to open a position in an intraday chart

 

What type of moving average ( Simple / exponential ) and what period is most reliable based on your experience.

 

thanks

 

cheers

 

rxs0005

[Kiwi 16]

The number of answers is not limited to the reasons you ask the question.

 

That said: if you want a ma that represents perceived value for pullbacks then you want the one used by the largest number of users or largest amount of trading cash. Either way, for intraday trading then you want an exponential moving average. If it was daily, a couple of simple moving averages (like the 200) are more commonly seen on charts than any other.

[BlowFish 10]

Hi all

 

can you guys suggest which Moving average crossover is a relevant indicator to open a position in an intraday chart

 

What type of moving average ( Simple / exponential ) and what period is most reliable based on your experience.

 

thanks

 

cheers

 

rxs0005

 

There is another fairly recent thread that asks the same question, you might want to have a search.

[gbreitkopf 10]

On the other hand if you use the MA used by most, and you set a stop accordingly, you will be stopped out a lot, a lot. Happy trading Martini