What are the most powerful MA's

Ty199

New member
Going to be a little differant for each trader and time frame. But what Moving Average do you think the market respects the most ? Day Trading, Swing,(overnight hold) and Long Term (more than a week) 9, 13, 20, 50, 100, 200, SMA ? EMA ? VMA ? What average do you see that the market respects the most ?
 

BenTen

Administrative
Staff member
Staff
VIP
Lifetime
This came from another trader:

Moving average road map for trends:
  • 5 day EMA - Strong Momentum
  • 10 day EMA - Short Term Trend
  • 20 day EMA - Pullback Support
  • 50 day SMA - Uptrend Defense Line
  • 100 day SMA - Big Price Dip
  • 200 day SMA - Last Stand in an uptrend/downtrend
  • 250 day SMA - Value zone

I personally use the 20 and 50 EMAs on intraday chart. For daily chart I use the 50, 100, and 200 SMA.
 

zeek

Active member
2019 Donor
200EMA is powerful and i always use it on my intraday 1 min & 5 min charts. Also have it on the 1 hour & Daily.
5 & 15EMA cross for good long & short intraday signals.
 

markos

Well-known member
VIP
@Ty199 Please don't take this the wrong way, but's it in the eye of the trader.
That said, many IBD folks use 50 & 200 SMA because that's what Bill O'Neil used.
On my one year daily, I use a 65 and 200 day EMA, just because. On my 1 year Daily & 30 day chart I use Slim Ribbons, which use 8,13,21 EMA crossovers as signals. On my weekly chart I use a 20 period Hull MA.

1994 I asked David Ryan at a seminar what he used. He told me that besides Bill's 50 & 200 Day, he used what ever MA that a particular stock liked to march to.
 

Ty199

New member
Thanks for all the input. I was looking on the daily /ES and noticed it respected the 50 and 200 EMA. I dont use any MA's on my chart. S/R daily and long term S/R and Pivot Points works best for me. I only day trade, I dont hold anything, well except a ETF once in awhile. I read that the 13 and 48.5 was the most accurate using them as crossovers for buy and sell. But it didnt say what time frame they used. I would say it was a daily. @markos I thought the same on what one works best is going to be what is traded. Take trading US Bonds, they trade at a slower pace so the movement is not the same as say /CL or something. So the signals would have to be slowed way down to get accurate. But I was wanting to add a MA to my chart to just give little more conformation. Going to try differant ones to see what matches up best to bounce off of S/R lines. So instead of 2 MA's it will be 1 and the S/R lines. I cant have much on my chart, just gets way to crowded and I like to see what is going on at all times. Call me simple but it works and Im a simple person LOL...
 

BuzzKill

New member
Lifetime
I’m new to uTS...
Try using SMAs using HLC/3 for the calculation 14-, 30- and 50bar settings with the 50bar set to show breakouts.
For added benefit, instead of the 14 use Bollinger Bands with the center line using HLC/3 in 14bar and the +2.0, -2.0 for the outer bands—again, in combination with the 30- and 50bar MAs with the 50 set to show breakouts.
The combination clearly shows Bull, Bear, Neutral and Confusion. Additionally, the slopes are very helpful in spotting consolidation/reversals.
This set-up is very useful for setting up outer boundaries for Bull/Bear breakouts once a 15min Opening Range (OR) is established. Simply use the closer of the two Bollinger outer bands to the OR to establish an equidistant boundary on either side of the OR. If either outer boundary is crossed, then go with the trend. The other tendency is a bounce in the opposite direction off of the outer boundary—so, use to boundary to establish reversal position.
Regardless, simply watch the 14, 30 and 50 SMAs with the 50 showing breakouts...
 

gapcap1

New member
When a market has been moving in a certain regime, sooner or later a market Watcher gets the inkling that a change is afoot. His action or inaction will disseminate exponentially to others, and then the regime really will change. The key to keeping up with this is to watch what the Watchers are watching.

This means that if you are monitoring data with human input (e.g. price) you had best be making your inputs adapt to what they are watching (i.e. usually the length of past data) and it should have an exponential component to it, rather than linear because human knowledge moves exponentially.

That being said; there's always an element of self fulfilling prophecy involved with widely watched indicators, and it has nothing to do with what's more "powerful", rather than what is "more watched" by those who actually drive price i.e., institutions et al
 

Rojo Grande

Active member
VIP
Hello to all,
Just a question and it is NOT intended as a debate. If you consistently use moving averages in your charting, do you use simple, exponential, Hull, or one that I have neglected to list? Thank you to all for your answers.
 

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