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Hi Rick,
I've kept things very simple when using MA. I use a 27 MA simple along with
stochastics on intraday charts. When stochastics call for a buy signal one, when
price crosses 27 MA signal two, signal three is depending on if its a listed stock
or Nasdaq, if Nasdaq look for ax(current head hancho, GSCO,SBSH,etc) , if listed
look at TICK.
Other MA's I look at are 50day simple.
TradeWell,
Joe Frabosilio
Bando57@xxxxxxx wrote:
> 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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