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Richard,
Just remember that the primary purpose of a moving average is to act a filter.
The most basic question a good trader will ask is if the price action is
trending or in consolidation. Moving averages help to answer that question and
the lengths used are typically a function of trading time frame and other
analytical methods being employed.
One consideration for the moving averages is the model being employed to
describe the market. So we might use one set of averages to discern wave
counts,
and another to identify cycle counts.
Always keep the basic question in the forefront on your path to finding a
profitable system that works for you.
All the best,
Terry Quinn
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