What scripts on which are you going to use? I mean nifty or crude oil ?
I donāt use moving averages, i used them in initial phase but didnāt find them reliable, kind of like all indicators i grew out of the need for them.
So what are using now?
On nifty (indices and some good stocks and forex) particularly but generally i believe, working mechanism are almost same with every script
So my perspective is that MA work because traders believe that they work, i.e. an indicators is purely notional and only carries significance because of widely held beliefs. Market isnāt influenced by the actual price movement around statistical indicators, but rather the behaviour of market-players who believe that these indicators imply something and thereby influence their market behaviour basis that. Think of them as road signals, and not hard dividers.
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Indices:- tested works well, you donāt need the volume indicator at all. Also I preferred to use baseline if you want can remove that too.
Good stocks:- I have never tested on these. Not sure if it works well. Be sure to have a volume indicator here.
Forex:- mandatorially have a baseline here. And have volume indicator. Trade only if there is volume. No reversals here.
Metals(gold & silver):- you can go reversals but I donāt prefer so I still have baseline. If returns are better without baseline then throw it away if you like. Have a volume indicator
Crude oil:- same as mentioned for indices
Exception is bank Nifty, for some reason I just kinda a find a good working system for BN.
Be sure to test them(backwards testing, forwards testing , small size sample account ) and then go with real money
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These backtesting results are great!
Do you find it so volatile, or due to any other reason?
Also, do you test them with different timeframeās?
Which back test results are you talking about? What did you test and on what?
Backtesting indicators so get better understanding as to how to apply them more effectively! In trading system, as we have to take care about our entry-exit, trade riding points, we can also work on these indicators like MAās, ranko and those you mentioned too, in order to improve trading system.
Each person carry their own trading system, so yes, each indicator or any other thing will not give same results or profit for everyone, but atleast, we can learn more and more to fill the loopholes in our system!
You can try yourself too to see if they are fulfilling your purposes in scripts you trade too! Well, Iām getting more confirmation points with this, like where to enter, how to ride, where to exit.
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It is moreover like seeing indicators from different angle. Psychology matters. Whatever the thing, if it works for us, then i think we can keep it as our compass, however they maybe wrong sometimes, but atleast, they can indicate the direction of possible trade!
Thry so price behaviours, and we traders have only this thing to work with i think!
Yeah way too much. Though I didnāt dig in well as I didnāt like wasting time on that
Donāt go below 15 min . 5 min is Minimum. There is too much noise in lower TFās, technicals donāt work properly there.
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Insight into market trends can be gleaned from moving averages. A technical analyst may employ a stock market indicator called a moving average (MA) to help smooth out price data by calculating a new average price at regular intervals. When the moving average is going up, that means the security is in an uptrend, and when itās going down, it means the security is going down.
Well, there are also names such as SMA, EMA, DEMA, TEMA, which one you find most helpful if you have experience of these?
SMA is smooth, EMA is kind of fast, but both are preferred depending upon the need.
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As far as i know, EMA is most commonly used among traders.
Yes, it is. Because it gives more signals, and traders need them, whereas investors need more reliable things.
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