EMAs


kelliPA

It doesn't get any easier, you just get stronger..
I use the 10, 20, and 200 EMAs - are they effective on all timeframes? Or do I need different EMAs for different time frames? thx
 
P

Piper

Guest
Every ema should work universally by my experience, best of luck. Though i would experience with the values around.

-P
 

rod178

Well-Known Member
kelliPA said:
I use the 10, 20, and 200 EMAs - are they effective on all timeframes? Or do I need different EMAs for different time frames? thx
'Effective for what' should be at least one of your questions.
 

Computater707

Well-Known Member
I have used moving averages for about 20 years and have played around with them a lot. I have used many different types and periods. The 20 50 and 200 are classic stock market moving averages that also can be useful on every time frame in Forex as well. I am used to looking at moving averages and they are now part of "my" reticular formation system. They are part of what I use to recognize price action and S/R.

I have chosen to focus on applying ICT's methodology to day trading, targeting my trades to typically close during the London close for 50+ pips. I am using what I understand to be ICT's EMA settings of 9,18&40 on the daily, 9&18 on the 4hr. I am concentrating on the 4hr, 1hr and 15min. I tend to sit on the 15min. Because of my long term reliance on MAs I find that using the 60, 240=(60x4) and 960=(240x4) linear weighted MA gives me a quick sense of dynamic S/R and trend based on the 60 ma for the 15 min, 1hr and 4 hr. It is a simple triple screen indicator for me.

I now regard MAs as fishing lures that attract orders for the big boys. A "good" MA that a retail trader would consider useful is one that seems to magically attract price action regularly. That MA provides the big boys with a pool of orders to be exploited as they see fit. A book I read talked about how magicians distract and misdirect their audience with curving looping motions with one hand because the eye naturally follows a curved motion focusing on the movement. Think about catching a ball- what do you look at. A liner motion causes you to look for an object you are supposed to notice. Trend lines an channels could be examples of this. I use MAs, trend lines and channels as additional indicators of confluence when I see an OTE based on the one or four hour fib & a 15min reversal fractal with its own OTE & A major S/R Level.

If was just starting out as a trader now and had chosen to learn ICT's methodology, I would not add any extra ma's (or anything else) until I was consistently profitable on a live account.
 

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