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Title: Moving Averages


sacredmarket - October 14, 2006 02:55 AM (GMT)
Hi Fellow TA Practitioner

I would like to know your practial experience with Moving averages. In particular the crossing of short term with longer term MAs. What is the siginificant of it and what settings do you use? 10, 30 , 90? 20, 50, 200 days? Please share. Thank you

SM

Hc - October 14, 2006 04:47 PM (GMT)
Here is my take on moving averages, and I hope that others can chip too.

I don't use MA alone as signals, or MA cross over alone as signal. MA is just one of the tools that I use to for my trading.

That said, there are a few areas that I find MA is particular useful. One of them is I use them as trailing stop. See the example in Biosensors: http://z7.invisionfree.com/ChartistsUnited...dpost&p=2406338

Another example is the use of MAs bands (originate from Guppy), where the MA band is use to gauge the strength of short term and long term trend. See the UOB Sesdaq thread here:
http://z7.invisionfree.com/ChartistsUnited...dpost&p=3609256

As for the usual 50, 100 or 250 days MAs, I don't use them at all in trading. The only time I refer to these MAs is when I need to define trend in Metastock exploration/system testing - to provide a general bullish/bearish background distinction.

csk - October 16, 2006 06:48 AM (GMT)

I can add something about MA but maybe a week or two later when I will have
more time to prepare. Now I am in the final stage and preparing for the launch
of Analyst's TurtleFarm.


Lion - October 16, 2006 10:36 AM (GMT)
My take on Moving Averages:

Rising Moving Averages provides support on price retracement

Falling Moving Averages provides resistance on technical rebound

Merging/Converging Moving Averages (particularly 20/50/200days, which is my favourite) often signals a medium-term change of price direction which could last for months. I have shown a no. of examples in CU:

1. Want Want
2. Nera Tel
3. Nera Elec... and afew more...

Undead - October 21, 2006 02:59 AM (GMT)
CSK talked about the dual moving average system here.
http://z7.invisionfree.com/ChartistsUnited...dpost&p=3343964

The charts indicated impressive results, capturing the up trend perfectly.
The title "illusion" seemed to suggest otherwise.

I have nothing to say about the dual moving average system.

But you can call it the moving average system, the turtle system or the undead system.
They will make money sometime and lose money some other time.

The thing is when you trade with your X system and die. When you meet your Maker, will you be remorseful and regret your actions.

Or will you be able to say, I have no regrets, at least I tried.
Given another chance, I will still do it again.

Then this is the system for you.
And happy trading.

csk - November 16, 2006 06:56 PM (GMT)

Its been a month and I still remember about the MA I promised to post. I want to
get Analyst's TurtleFarm launched and it is very very close. Took a bit longer
because of adding a last minute feature for a bar-by-bar walk forward
testing/training whichever might want to call it.

Beside the ability to test the Turtle trading system, it is also turning out to be a
tool for learning how trading a complete trading system is like using the Turtle
trading system as the training medium.

Will post the MA thing after Analyst's TurteFarm is out the door.

csk - December 16, 2006 12:20 PM (GMT)

It's been another month. I will keep my word.

Analyst's TurtleFarm is out the door... 30 minutes ago. I need to update the
website.

I will do the MA thing soon.





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