A Moving Average Trading System

[arun]

Hi gururaj

Can you tell me which data service provider can give me intra-day data for metastock?

Can you recommend one?

Thanks

 

[gmambro]

how would you rate the 3 & 5 day moving average system?

 

[Traderji]

gururaj wrote...

moving averages trading system is excellent as i have done some small trades on nifty during the day yesterday and today. i have traded on the 5 min chart and it gives some very good signals. i would like to know if there is something like this similar for stop loss and not stoploss and reverse. i have metastock charting software and with real time data.

I personally use the TradersEdgeIndia.com Trend Trading Indicator as my stoploss for intra-day trades.

You can see an example in this post.

 

[Traderji]

gmambro wrote...

how would you rate the 3 & 5 day moving average system?

The 3 & 5 Moving Average crossover system will work well in trending markets.

 

[sh50]

I have been told that different moving averages have to be tried for different scrips.I am trying 10,30,90. Somebody suggested 8,24,72. You had suggested 3,13,39. Any other combination? Is it that one can try anything that comes to mind? THe 10,90 combination was suggested by one of the TA experts at the investor camp.

 

[TATrader]

If I remember correctly Turshar Chande had recommended a 5 & 65 moving average trading system in his book "Beyond Technical Analysis".

 

[harpreetsx34]

while a moving average might provide a very profitable trade in a trending market where the trend is very clearly known but in a range bound market it might give many fall breakouts so where the market is moving in a predetermned range it always better to follow a momentum indicator like RSI Lane stochastics or oscillators for profitable systems

 

[aarun3034]

Excellent. How about a 5,50 days moving average system?? Another point to be addressed is for how long a buy or sell signal generated from 3,13,39 system is valid ?? I feel in 3,13 days system signal will be more frequent and sometimes may not be from a fully developed trend, esp. during the periods of very high volatility.
Kindly comment

 

[amc]

The Aroon indicator is pretty good in identifying trending and non trending markets. This indicator is available in most technical analysis software.

This indicator was developed by Tushar Chande in 1995, Aroon is an indicator system that can be used to determine whether a stock is trending or not and how strong the trend is. "Aroon" means "Dawn's Early Light" in Sanskrit and Chande choose that name for this indicator since it is designed to reveal the beginning of a new trend.

Although the Aroon is similar to Wilder's DMI system (and the Aroon Oscillator is similar to Wilder's ADX line), the Aroon is constructed in a completely different manner.

I would also suggest you to read this very interesting article about trends and trading ranges.

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[Traderji]

The aroon indicator can identify trending and non trending markets.

When the markets are trending, use a moving average trading system!

When the markets are sideways (non-trending) use a OB/OS oscillator trading system.