Best Moving Average!

[Guest indoshare]

Guys,

 

Someone plz tell me which is the best moving average for M1 timeframe to determine the current immediate trend of a pair? Or any good Indicator that will help me know the immediate short term trend of gbpusd in 1 min timeframe?

 

Thanks in advance,

 

Indoshare

[Freddie]

Guys, Someone plz tell me which is the best moving average for M1 timeframe to determine the current immediate trend of a pair? Or any good Indicator that will help me know the immediate short term trend of gbpusd in 1 min timeframe? Thanks in advance, Indoshare

 

21 message must be 10 characters...21

[Guest indoshare]

Freddie,

 

I didn't understand.. would you plz explain in detail.

 

thanks

21 message must be 10 characters...21

[s1quash]

what are you trying to say freddie? ;D

[Guest rockymunda]

as i have been using success fully since long time, these are the cross over moving average and please keep in mind the slopes and rise .15 - 5 - 60s

 

regards

rocky

[Guest indoshare]

as i have been using success fully since long time, these are the cross over moving average and please keep in mind the slopes and rise .15 - 5 - 60s

 

regards

rocky

What are you saying? Can't understand.. please explain

thanks.

[Freddie]

I wanted to say 21...21 period moving average.

 

So, I wrote 21

 

A message came up saying that the message must be at least 10 words so I wrote more words.

 

The prime MA is, in my opinion 21.

 

Rocky appears to use 15, 5 and 60. Watches the slope and the crosses.

 

I see that you are new so try 'baby pips' - google it.

[Guest indoshare]

anything better?

[soundfx]

indoshare,

 

The M1 timeframe is the worst possible to look for any sort of trend. Trends aren't immediate as you think, they form over time. On the 1m chart if a 1m candle goes up and the next goes up further are we in an upward trend? Not if the next candle shoots down and retraces the move of the previous two (which happens a lot on the 1m).

 

All MA's are similar...they're lagging indicators and only tell you where price has been before (on average). MA cross based systems can work sometimes and other times they fail - some MA crosses come before a nice strong move, however at other times MAs will cross back and forth all day chopping your trades to bits.

 

If you really want to use MAs then Google for "scalping the rainbow" as that indicator will give you the best of all worlds when it comes to using MAs - because it uses loads of them.

 

I wouldn't go lower than 5m for scalping as at least this timeframe will trend to a small degree - there's far too much noise on the 1m.

 

If you use 5m or 15m for scalping, then there are several indicators worth looking at...

 

The Supertrend1 indicator and Nonlagdot can be handy for highlighting the trend.

 

Also look at MACD and Awesome Oscillator - these are very similar, though can be used as confirmation of which direction you should be trading in.

[4xmeter]

indoshare,

 

The M1 timeframe is the worst possible to look for any sort of trend. Trends aren't immediate as you think, they form over time. On the 1m chart if a 1m candle goes up and the next goes up further are we in an upward trend? Not if the next candle shoots down and retraces the move of the previous two (which happens a lot on the 1m).

 

All MA's are similar...they're lagging indicators and only tell you where price has been before (on average). MA cross based systems can work sometimes and other times they fail - some MA crosses come before a nice strong move, however at other times MAs will cross back and forth all day chopping your trades to bits.

 

If you really want to use MAs then Google for "scalping the rainbow" as that indicator will give you the best of all worlds when it comes to using MAs - because it uses loads of them.

 

I wouldn't go lower than 5m for scalping as at least this timeframe will trend to a small degree - there's far too much noise on the 1m.

 

If you use 5m or 15m for scalping, then there are several indicators worth looking at...

 

The Supertrend1 indicator and Nonlagdot can be handy for highlighting the trend.

 

Also look at MACD and Awesome Oscillator - these are very similar, though can be used as confirmation of which direction you should be trading in.

 

I agree. In my humble opinion, I think is not worth it to play the 1m TF. There are 15 - 25 pips to some (great or small) extent out control on the 5m TF and 9 to 15 pips completely out of control on the 1m. That leaves one with 6 to 10 pips difference (or advantage) that one would like to catch in the 1m and for me that is not enough for all the up and down volatility.

 

In the 15m TF and 5m TF there are about 30 to 45 pips difference that is to many pips for me to give away. So I prefer the 5m TF. The problem is that with 5m TF there is more noise and one could get caught in it and tend to loose sight of the trend. A good 5m system has to give one the choice to go for it (the 15 pips) or let go. Specially useful during sideways conditions.

 

I disagree about MA as lagging indicators as a negative thing. Anyhow, they could be both leading (they moves with price) and lagging according to the settings of a particular TF.

Edited March 12, 2011 by 4xmeter

[mynameisandhy]

Guys,

 

Someone plz tell me which is the best moving average for M1 timeframe to determine the current immediate trend of a pair? Or any good Indicator that will help me know the immediate short term trend of gbpusd in 1 min timeframe?

 

Thanks in advance,

 

Indoshare

 

Hi,

 

to use Moving Average (MA) as your indicator for entry market, maybe you can try to learn Kang Gun (KG) analysis, you can find his thread at forexindo.com or forexfactory.

 

Cheers

[shabz]

You can't establish the trend on a 1 minute timeframe, select a higher timeframe 15 min or 1 hour decide on a moving average period you like, then multiply that number by the timeframe size you detremined the trend on.

 

If you had chosen 21 sma on the 15 min TF , then 15 X 21 = 315 sma for the 1 min TF. This will enable you to know the what the 21 sma is doing on the 1 min TF.

 

You will get a smoother ma line than using a MTF moving average.

[Diesel 10]

I believe Hull moving average is best but I don't advise trading on 1m timeframe. Too much noise...

[⭐ megashop]

i use LWMA 200 period on M5 timeframe

sell when price cross down

buy when price cros up

 

why LWMA200? because this is a decision line for intraday trend.

[Diesel 10]

i use LWMA 200 period on M5 timeframe

sell when price cross down

buy when price cros up

 

why LWMA200? because this is a decision line for intraday trend.

 

Thanks Megashop. I took a look at that and like it as a trend filter. Bravo !

[⭐ megashop]

Thanks Megashop. I took a look at that and like it as a trend filter. Bravo !

 

if u want, u can add second MA 200 (exponential) on the same timeframe, if u see the candle is in the range for a long time (up and down between LWMA200 and EMA200 on 5minute TF) dont trade because its likely the market is sideways or maybe want to bouncing :)

[Diesel 10]

if u want, u can add second MA 200 (exponential) on the same timeframe, if u see the candle is in the range for a long time (up and down between LWMA200 and EMA200 on 5minute TF) dont trade because its likely the market is sideways or maybe want to bouncing :)

 

Thanks, the one thing I saw was sometimes price closes back and forth on either side of the LWMA and was going to ask you how you handle that to avoid whipsaws. Apparently you read my mind !

[Diesel 10]

if u want, u can add second MA 200 (exponential) on the same timeframe, if u see the candle is in the range for a long time (up and down between LWMA200 and EMA200 on 5minute TF) dont trade because its likely the market is sideways or maybe want to bouncing :)

 

Thanks, the one thing I saw was sometimes price closes back and forth on either side of the LWMA and was going to ask you how you handle that to avoid whipsaws. Apparently you read my mind !

[conglo]

Have to agree with many of the other posters.

M5 and below is just noise.

 

You're not going to see any tradable trending below H4.

I'll probably take a lot of flak from this one, but if you want trending look more at the E/U. Cable is very volatile.

 

A 26 SMA on the E/U works very well, proven over many years.

It also works well on the U/C.

 

Contrary to popular opinion (of course, this is my opinion) "non-lag" indicators are a waste of time. Every indicator lags.

Never seen one out-perform an SMA.

 

You're on your own with Cable, I don't even get near it, but at least look at the dailies.

 

 

Guys,

 

Someone plz tell me which is the best moving average for M1 timeframe to determine the current immediate trend of a pair? Or any good Indicator that will help me know the immediate short term trend of gbpusd in 1 min timeframe?

 

Thanks in advance,

 

Indoshare

Edited March 16, 2011 by conglo

[smurf43]

Thanks, the one thing I saw was sometimes price closes back and forth on either side of the LWMA and was going to ask you how you handle that to avoid whipsaws. Apparently you read my mind !

 

How about having +10 and -10 Levels (dotted line) on 200 LWMA and only enter long if the price goes above +10 and only enter short if the price goes below -10

[Marchello]

app. 1/3 of my decision trading plan relies on 15-5 min according to the river

created by the system from Raghee Horner ..

 

 

hXXp://[email protected]/document/-a8M_x23/Raghee_Horner_-_Forex_Trading_.html

 

mho

Edited March 16, 2011 by Marchello

[alphine]

How about having +10 and -10 Levels (dotted line) on 200 LWMA and only enter long if the price goes above +10 and only enter short if the price goes below -10

 

Can you explain about having +10 and -10 Levels (dotted line) on 200 LWMA ?

[Diesel 10]

Have to agree with many of the other posters.

M5 and below is just noise.

 

You're not going to see any tradable trending below H4.

I'll probably take a lot of flak from this one, but if you want trending look more at the E/U. Cable is very volatile.

 

A 26 SMA on the E/U works very well, proven over many years.

It also works well on the U/C.

 

Contrary to popular opinion (of course, this is my opinion) "non-lag" indicators are a waste of time. Every indicator lags.

Never seen one out-perform an SMA.

 

You're on your own with Cable, I don't even get near it, but at least look at the dailies.

 

Great minds think alike Conglo. I had deduced it to be 27; close enough.

 

I assume you base the SMA moving average calculations on close (as opposed to "typical price" H+L+C/3, "Median" H+L/2 or "Weighted" H+L+C+C/4)?

 

When trading it on the daily EURUSD, do you go with a real time breakout, daily close thru the SMA or a change in the slope of the SMA? Also, do you play the 3-4 day pullbacks to get in additional positions with the trend? Thanks.

[conglo]

Hi Diesel,

 

You are spot on.

While a 26 SMA close works quite well, at least on the E/U a 25 SMA Median on the dailies works even better.

I just reverse when at the close of the daily bar the direction of the MA changes. It's that simple.

 

Here's a link to FXSniper's MA which I have modified a bit.

This MA changes color when direction changes, I use this quite a bit:

http://www.multiupload.com/5IO7FT3640

 

I've done a lot of research on this.

Trying to catch the pullbacks on this particular routine does not work well. Just play single lots on the MA changes.

 

If you can make it work please post.

 

For adding positions on pullbacks, this one works quite well (D1, E/U), easy, too:

Buys:

The 12 SMA (Close) is above the 26 SMA (Close). Maybe it's a coincidence these are MACD MA's, I don't know.

At the daily open, set a buy limit at the low of the previous bar. If you're already below the low then buy @ market. Exit at the high of the previous bar.

Add positions as rules dictate (make sure you have the margin), just close out all positions at the high of the previous bar.

Never mind where the MA's are on the exits.

 

Reverse for sells.

Very nice returns.

 

Combine the two strategies using separate accounts and good MM and it could do very well.

God willing.

 

 

Thanks for your reply.

 

 

 

 

 

 

 

 

 

Great minds think alike Conglo. I had deduced it to be 27; close enough.

 

I assume you base the SMA moving average calculations on close (as opposed to "typical price" H+L+C/3, "Median" H+L/2 or "Weighted" H+L+C+C/4)?

 

When trading it on the daily EURUSD, do you go with a real time breakout, daily close thru the SMA or a change in the slope of the SMA? Also, do you play the 3-4 day pullbacks to get in additional positions with the trend? Thanks.

Edited March 17, 2011 by conglo

[fu_fighter]

M1 isn't that a bit short?