4 Answers
<p><br>The best way to use it’s as a trend filter. For example if you are watching 15 minute chart of S&P500 pick 100SMA or 200SMA to help you decide should you be looking for buying or selling opportunities. Then wait for a minor pullback, and after seeing first strong trend bar in predefined direction, just place the stop order. This way you will have probabilities on your side. Using optimized number of periods for moving average will never work.</p>
4 Views
<p id="isPasted">Simply use S21 with a yellow colour & E20 with a red colour .When yellow comes below the red then buy & yellow crosses above the red sell it. the time frame is 7 or max 10 min.The above set up is for DAY TRADING Only.</p><p>The De merit in this is you will not get exact exit points.because the MOV AV crossovers are too lagging. Hence for entry take the position when candle closes after these mov av bot crosses(FOR BUYING) or top crosses(FOR SHORTING). but exit depends on your GREED & FEAR.The success rate is around 80 to …</p>
3 Views
<p id="isPasted">I don’t use simple moving average for day trading, it’s a laggard. I use EMA (exponential moving average) for trading along with other combinations.</p><p>EMA is sensitive to price action as compared to SMA by definition, any recent price action will be visible in EMA and not SMA so one should not use SMA for daily trades.</p>
2 Views
<p>Simple moving average is a trend based indicators. Choose any stock which are going to be in trend. If stocks moves sideways then it will not work. You can combine slow and fast moving average combination for better results.</p>
Please select pages to share
shared
