MA Zone

New comment
 

If you were to add a MA to a chart of any time frame to separate out a "BUY" zone and a "SELL" zone

What would be the period of the MA? 

 

It depends on the system - some people are using 50, I am using 55 and 200, some other people are using 34. So, it depends on the system and timeframe. For example :

Forum

How to Start with Metatrader 5

newdigital, 2013.01.13 15:25

To create my first EA - I used this article:

MQL5 Wizard: Creating Expert Advisors without Programming

So, I did exactly what was described on this article with the following exception: 

- I selected MA with the period of 55 (because I remember famous CatFX trading system which is something about the price crossing MA with period 55 on M30 timeframe);
and
- I used Exponential in 'Method' - 'Averaging Method' - just double click by mouse on the word 'Simple and you will have a choice.

yes, I did it !

And it is my first EA (attached).

 


 
There is no rule which period or mode of MA shows the zones of buy and sell. Traders watch and study the behavior of each instrument with Moving averages on different time frames and prefer one over the other. At the end this MA is actually a line not a border.
 
Stalker83:
There is no rule which period or mode of MA shows the zones of buy and sell. Traders watch and study the behavior of each instrument with Moving averages on different time frames and prefer one over the other. At the end this MA is actually a line not a border.

I agree there is no fixed rule

I personally use 48 simple MA and finds the price reacts quite well with the line 

 
Whatever chosen/proved perfect period of MA, again it will be defeated by one or the other time. you can not be sure of it to trade perfectly and profitably all the time.
 
One way to adjust the MA period is to consider the underlying cycle. For example, assume you are trading, say, the H1 timeframe, and you detect a 36 hour cycle. You might want to set one MA at 9 hours (9 periods) and another at 18 hours (18 periods). You would expect the shorter MA to cross the longer MA at the approximate peak or trough within the underlying cycle. Timing a moving average to coincide with an underlying cycle can improve its predictive efficiency. That said, however, MA combinations should NEVER be used alone. Combine them with RSI or MACD, and consider the underlying cycle in setting the time periods again.
 
nice and thanks,
myfxpt:
One way to adjust the MA period is to consider the underlying cycle. For example, assume you are trading, say, the H1 timeframe, and you detect a 36 hour cycle. You might want to set one MA at 9 hours (9 periods) and another at 18 hours (18 periods). You would expect the shorter MA to cross the longer MA at the approximate peak or trough within the underlying cycle. Timing a moving average to coincide with an underlying cycle can improve its predictive efficiency. That said, however, MA combinations should NEVER be used alone. Combine them with RSI or MACD, and consider the underlying cycle in setting the time periods again.
nice and thanks . how to detect a cycle? manual or any other indicator? please elaborate please.
 
myfxpt:
One way to adjust the MA period is to consider the underlying cycle. For example, assume you are trading, say, the H1 timeframe, and you detect a 36 hour cycle. You might want to set one MA at 9 hours (9 periods) and another at 18 hours (18 periods). You would expect the shorter MA to cross the longer MA at the approximate peak or trough within the underlying cycle. Timing a moving average to coincide with an underlying cycle can improve its predictive efficiency. That said, however, MA combinations should NEVER be used alone. Combine them with RSI or MACD, and consider the underlying cycle in setting the time periods again.
Can you explain more on cycle?
 
I am very interesting in this topic , i am looking for something to set the period dynamically .... 
New comment
Reason: