They are not.Originally Posted by ;
They are not.
From my understanding, some larger institutional players use a 10EMA on a daily candlestick if it's trending, to set decent entry points.
You can acquire decent information regarding the market through various manners with MA's.
If you would like to trade together just great for trending market, but u have to know if the market is gna trend or consolidate, unless ur mysterious meg you wont know this.
The experienced trader here will tell you that you dont really need MA's as you can acquire information from the market with no. Likely true.
I've discovered that the most widely used indior is the 200EMA. Not sure if that is a fantastic thing or bad thing . Generally, the masses don't do this well. The most common method I've heard MA's utilized for are crossovers, which has numerous inherent defects which have been discussed in detail for ages it is not worth going into (whip, viewed( dust). I've heard some suggest that some MA's can offer support and resistance but I haven't found pivots to occur on them much more than any additional space onto a chart.
Two approaches I have discovered used efficiently is for breakout egies after a reversion to the mean, and multiple time frame bias analysis.
The breakout egy involves choosing a moving average (the case that Rob Booker utilized in the movie that I watched was an 800SMA if my recollection serves me) that price tends to 'stick to' when price retraces back into it. When price has shaped a clearly marked range at the MA, exchange the breakout using strong cash and trade management. He produced some (alleged) results from somebody that trades this method entirely. The success% wasn't good but was outweighed by a fantastic R, as you could expect from a breakout egy and also turned into a decent profit. Whether the ranges presence upon a a moving average provided any considerable enhanced results to precisely the same breakout egy with no MA filter remains to be seen.
The multiple time frame prejudice method held a bit more attention for me personally. Only the procedure (I think it was Peter Bain who clarified the procedure) would be to smack a moving average onto a chart, look at it from 3 different time frames, state 4H, 1H and 15m. When price is below MA on 4H and 1H (indiing a bearish bias on greater time frames), but over on 15m, then look for entry signs to receive short in keeping with the greater timeframe prejudice. Of course, the lower time frames will lead the greater time frames and reversals will look a lot like retracements. As a technique of filtering trades as well as a sign of prejudice and appreciate this has a few legs IMO but it's not a stand alone system.
If you are really interested in MAs, then you can find a FREE, profitable MA system, according to 50 100 crossover here: https://www.forexsoutheast.asia/gene...forecasts.html
I believe this respnse:
1)concise
2)to the stage
3)accurate
Please consider shutting this thread... we finally have a question asked onforexsoutheast.asiathat has properly answered in under 1 page!
I am sure someone has created an MTF MA indior so that you may look at, by way of instance, an M15 chart of this 200ema and concurrently (on the exact same chart), examine the true 200ema worth as it would be about an H1 and H4 chart. You would not have to flip between charts.
But have you noticed that an M15 200ema is all about the exact same worth as an H1 50ema? ( 200 * 15min/60min = 50). (Same is true for sma's). Look at the MA's on two charts and you'll see that they generally agree in a very small number of pips. Accuracy depends on if the PA has made any intense moves or gaps that would throw off the two averages in contrast to one another, but generally they're very close to the exact same value, provided that you're thinking about a fairly large number of pubs. I am familiar with MAs of 25 and greater. But if you anticipate a 5 MA on an H1 chart to be just like a 20 MA on M15, the 5 is way too small a number and you'll observe substantial differences.
Someone might take the position that the 100 MA is my favourite on the M15, M30, H1 and H4. That position is almost identical to seeing the 50 MA as exhibited on the M30, and H1 charts, and... (note!) , the 25MA on an H4 chart (because of the 4X time variable rather than 2X).
I've observed a 1500 MA on my M1 chart bounce to the pip following a massive move. Why that number? Because it appears to be similar in value to some 300 MA on M5, a 100 MA on M15, a 50 MA on M30, and a 25 MA on H1. Anyone see their favourite MA number/TF there?
Sometimes, it is a 1200 MA on M1... so what is that: That is just like a 240 MA on M5, an 80 MA on M15, a 50 MA on M30, and -- what is probably the popular MA among those numbers -- a 20 MA on H1. I believe a 20ma is the foundation for bollinger bands (I did not confirm this announcement). Either that or the 21 that is very near.
What's my purpose? First of all, it is a useful suggestion to recognize you can look at an MA on any TF chart and readily calculate what MA that will be approximately equivalent to on a different TF chart. You divide or multiply the MA number by:
2X (between M15, M30, H1, H2, H4, H8)
3X (for M15/M5)
4X (for H4/H1 or H1/M15)
5X (for M5/M1 or Weekly/Daily)
6X (e.g. Daily/H4)
If you adore the 50ema on H4, then I recommend that you continue seeing that chart for the big picture and see it in context. But if you also like to observe the M15 chart, look at adding an 800ema (50 * 240min/15min = 800). It will give you approximately the exact same value as the H4 chart without taking your eyes from this M15 chart.
Can I enjoy MA's and use them? Yes. Frequently price does respect the most frequent values (50, 100, 200, and some others) and about each period. If it bounces to the tick, you know (after the fact) that the big players were paying attention. Do you know beforehand??? Maybe in conjunction with other factors like Elliott Waves, trendlines, stations and fibo amounts, maybe you have a hint. The majority of the time you won't know beforehand... but when a long-term chart like the H4 produces a picture perfect or around bounce off the 50 (ema or sma) or even the 100 (ema or sma), perhaps you might join in for the pleasure of this retracement or reversal that only happened since the big players DO consider MAs. The evidence is on the charts.
But IMO if you examine a chart with only a solitary MA on it, I do not think you'll have a clue whether it will bounce or split when PA approaches it. This may well be the reason a lot of men and women see no worth in MAs because if they violate or not might appear to be random. I believe that in the event you look at a cluster of comon MAs on a single chart, and see the separation between them and see which of these bounced previously PA, you'll have a hint as to whether to expect a bounce or break. The Guppy MA system comes to mind. You may never(!) Be certain, but you can improve the probabilities of your figure and trade accordinly.
BTW, I do not have MA's all figured out but I have them on my charts and I really do believe them worthy of additional study.
Kent ()
P.S. Do you enjoy the CCI indior? It's predied on the SMA, and as soon as it rebounds or crosses the 0 line, that's almost equal to PA crossing the interval MA you're seeing with CCI. For instance, when CCI (50) crosses the 0-line, you will observe that PA also only crossed the 50 SMA!
Also notice that for exactly the very same reasons I gave above that, for instance, a 50 SMA within an H4 chart is much like a 200 SMA within an H1 chart, you may also see similarities between watching CCI(50) within an H4 vs. CCI(200 within an H1). They cross the CCI zero line at pretty much the exact same time.
I'm sure there are lots of potential MTF MA indiors, but here is a link to a ribbon with one which has been posted 8 months ago.
Https://www.forexsoutheast.asia/fore...e-journal.html
Try opening a M15 chart using a 200 SMA, and utilize the MTF indior to display the 100 SMA in an M30 chart, and display the 50 SMA in an H1 chart. If my theory (based on my observations) holds true, all the values should be like each other. (Repeat with EMAs. Still true??)
I have attached some charts comparing the MTF vs a multiple MA onto a lower chart.
About the GBPJPY, H4 chart, I happened to observe that PA in this major recession since October has dropped repeatedly from the 90ema or even 90sma. Why 90? I don't have any idea. However, my theory is the 90 MA on an H4 chart is approximately the same as a 15 MA to a Daily chart (Keep in mind though that 15 is smaller than my perfect minimum of 25 so I would anticipate some inaccuracy).
How do they compare? See for yourself... the Daily 15sma provides a pretty good bounce stage, but be careful to be aware the last value of this sma relies on the *Close* price, which during the pub hasn't happened yet. This can effect the actual value but generally not by much unless the bounce is completely huge within this pub.
My point is that some people adore the 15sma and should they watch it bounce to a Daily chart, this can be roughly the same as viewing a 90sma on an H4 chart. There are a few differences of maybe 30 pips during the steepest aspect of the curve which is greater than will be my taste. While I might exhibit it to the H4, I would want to have the Daily chart open as well to check it specifically (or, use the MTF MA indior as shown).
I repeated this chart with no MTF so it is possible to observe the 90ema and 90sma lines more clearly. There are numerous nearly precise touches, but occasionally it is the sma and other times it is the ema. Is this a coincidence ?? I acknowledge I do not know in advance that will bounce but it merits further study.
Another example is attached. The H1 Indies the 360 sma, and a MTF-H4-90sma. The two agree well. If you zoom into many areas, they agree within 2-3 pips except for the steepest aspect of the curve that I saw could change as much as 15 pips. That illues both are only an approximation of one another, rather than an specific equivalent.
Personally, I do not think they're useful nevertheless, like any indior, if everybody uses them they could become useful.
Stick ANY MA in your chart and you will come across bounces it off and crosses over it. That is .
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