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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?


To: IVAN1 who wrote (10907)5/28/2000 4:29:00 PM
From: bdog  Respond to of 12039
 
IVAN1, "What is a good, basic vanilla MA to use"

The best vanilla solution I can think of is to take the chart you are looking at and study it with different MA's. Check to see in what general market environs one gets good results as opposed to getting whipped.

Again, it depends on ones time frame. Check out an 8 and 13. Then try a Simple vs Exponential. A Time Series and Weighted. Variable too. Try using a lead. Write down the trades or system test it in Metastock or the like.

Richard has covered this all very well. There are many examples on this thread. There is no easy answer. It takes work. By testing you will find out if your idea will work and be confident in your trading.

Simplicity is good, and I think Einstein said... "Everything should be made as simple as possible, but not simpler."

It seems never ending at times.

but it's fun.
bdog



To: IVAN1 who wrote (10907)5/31/2000 3:54:00 AM
From: Richard Estes  Read Replies (2) | Respond to of 12039
 
Bdog gave some good advice. Look at a chart with different time periods and types of MAs. See what differences you see as you change them.

Depends on you, you must determine your style. Try a 8, 13, 21, 34, 55, 89 MA. Today's environment yells for a shorter ma due to volatility but some like more risk. Expect that 30-40% of trades will be losses. The important thing is that they are small ones. Preserve Capital is first rule.