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Id like to start a thread on moving averages...
Fact: they are perhaps the most simplistic indicator...as to their
effectiveness..thats up to the individual.
Fact: no two traders seem to agree on what is a good length of time for a
moving average..Of course different markets respond to different inputs. Also
intra day traders will certainly see things differently from end of day
traders to positional traders if there is such a difference between those
two...
For example I attended a meeting between traders the other day...one trader
swore up and down that a 55 day MA is the most important indicator. Not 40
days...Not 50 days..not 90 days..not 200 days...55 days..
Another trader in reference to crossover MA...used a 13 day..89 day..and 200
day for stocks...and said this was after six months of testing that these
particular numbers provided the most accuracy...
So Id like to hear from other traders on their experiences with MA...
Ive heard it said many times that for crossovers you need an 8-1 ratio..i ask
why?
Presently I have been using a 4 day with a 32 day backed up with a
confirmation MA of 90 days...Im not saying this is the holy grail. Im just
saying I picked these numbers at random and liked what I saw. But im sure I
could go back to Omega Supercharts 4 day.9day..with an 18 day long average and
perhaps be just as happy..
Well hope there are some traders out there who would like to share some
thoughts on Moving Averages.
Rick
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