What's the importance of moving average in your trading?

They are of different types. I recognise it the heart beat of market :heartbeat:. Where it stands for you or how you use in your trading!!?

I am an average person, and I move sometimes, so I like moving average :grin:

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in market or in your life?:grin:

Both. I use EMA daily but don’t move much in life.

I should move more in life :man_facepalming:

Do you want to hit the finish line too early?:grin:

I am already late Himanshu, so yes if I have the chance, I would love to reach the finish line and call it a day :older_adult:

If we target stars, then can we crack light bulbs, it’s good to keep high dreams and work for them :slightly_smiling_face::+1:

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Of course. One has to keep pushing oneself if one needs or one desires. I started with FD, and reached till FnO.

But as one gets older, he gets to appreciate time more than money, so my statement was w.r.t. time :older_adult:

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Himanshu darta nahi, kyun ki Himanshu jaanta hai ki darr ke aage jeet hai :ninja:

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:heart_eyes::heart_eyes::heart_eyes::heart_eyes: love u bro

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Well you can use it for confirmation indicator(I don’t prefer) or moving average is the best as a baseline like what is the overall trend. For me it is a sign not go for reversal or reversal trading. Essentially prevents me from being a reversal trader and being trend trader.

For example , so based your confirmation indicators:-

  1. If price is below your moving average, you will go short only , all long signals are ignored.

  2. Likewise if price is above your moving average , you will go long only, all short signals are ignored.

  3. For a cross over i.e price crossing the moving average, I usually suggest have volume/ volatility/ momentum indicator(choppiness index, MACD histogram etc) to confirm and take trade.

Bonus:- often times in cases of black swan or major news event , you are lot protected . From what I have noticed market gaps , news events work in your favor if you follow above mostly

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great insights :innocent: thanks:) and If i go into trade with moving averages, then how can i effectively put and trail stoploss?

MA is a lagging indicator, so you cannot depend on that alone. You have to check leading indicators like volume, pivots, and support and resistance zones too before taking the trade.

No single indicator either leading or lagging works alone, it has to be combined with others before taking a call.

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So moving average is basically about trend confirmation and i should depend on other indicators as you mentioned before going into trade??

Do it needs 3-4 indicators confirmation or i can enter into trade with 1-2 indicators?

For delivery trading yes, I am not sure if they work the same with day trading too, considering the smallest time frames.

For delivery trades, even though price crossing a particular MA must have reason behind, the expectation may soon fizzle out, and price drops again below the MA quickly, maybe the next day too. So it is not completely reliable. So even with delivery, more than one MA is used. For intraday I don’t know which MAs are used and how many MAs are used, and how quickly they move up and down.

For delivery though they sure are part of strategy for me.

I work with 9 20 50 100 200 EMA with small time frames, but they are not reliable every time as you said in positional or swing trading too.

From what I know, there are many indicators out there, some extremely popular, widely used, some not known to all, and they are either leading or lagging. Leading obviously are dependable as they lead, but they could be false, the trend may not be sustainable, so soon after we take a position based on leading indicators the trend may reverse and we will be in loss, so lagging indicators although lag are used to have a more clear picture, more clearer tend.

So, depending upon our strategy we can choose and test different indicators, and use them more and more until they become core.

Technical analysis also has a practice component to it, not just knowing. The more we spend time with charts, the quickly we can say either a chart is good or bad.

Like Munger said, take a small thing and be serious about it.

Take 3 or 4 good indicators, distinct indicators, which provide different details, and learn to capture the entire picture of the price movement.

It sounds simple, as it is, but like Buffett says, it is not easy, I am too learning all of this slowly.

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For positional, you need MACD, RSI etc too, MAs are not enough.

As you are using so many MAs, did you try Guppy MA?

It depends on your choice , you can use it as confirmation indicator or use it as a baseline. I suggest use it as baseline avoid going for reversal and be a trend trader. It protects you from black swan and market gaps to a lot of extent.

Honestly for past 2 years , I am searching for good one. That’s the reason why my trading is on hold as I didn’t pretty much beat the nifty index. I only made 6%. Your exit indicator is the money indicator. For exit indicator below I found working well and currently testing in 1 hr TF:-

  1. flip your chart to heikin ashi after your entry. Keep riding price till candle color changes. Don’t use heikin ashi for entries!!

  2. SMA 7, or SMA 9 when price cross the line

  3. Flip your chart to renko , renko blocks size as ATR as default. Use SMA 3 offset 3. When price cross exit. ( Works well but still testing for through confirmation)

As always test everything based on your system!!

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