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SMA works

  • #1
  • Quote
  • First Post: Nov 11, 2009 11:27am Nov 11, 2009 11:27am
I have been trading successfully using sma and it works ! Thats the simplest technical tool.

I want to know how about other technical tools- MACD, fib. Do they also give clear trade set up signals?
  • #2
  • Quote
  • Nov 11, 2009 11:41am Nov 11, 2009 11:41am
SMA is the ONLY thing that works.

Try M1 :-


55ema
200ema
600sma
1440sma


You'll be amazed!!

MACD is just the difference between 2 sma's you realise.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #3
  • Quote
  • Edited Nov 12, 2009 1:57am Nov 11, 2009 11:59am | Edited Nov 12, 2009 1:57am
Thanks Turveyd for expert guidance.

On 1 M charts, i have plotted 55 ema and 200 ema and 600 sma and 1440 sma.

How should i interpret the trading signal? Is it same- when 55 ema crosses 200 ema and 600 sma crosses 1440 sma?
  • #4
  • Quote
  • Nov 11, 2009 12:03pm Nov 11, 2009 12:03pm
Quoting kingfisher
Thanks Turveyd for expert guidance.

On 1 M charts, i have plotted 55 ema and 200 ema and 600 sma and 1440 sma.

How should i interpret the trading signal? Is it same- when 55 ema crosses 200 ema and 600 sma crosses 1440 sma?

I am currently using 5 day sma and 35 day sma on 1 M, 15 M and 1 H charts.
No crosses too slow, look for S/R / Buyers / Sellers at these levels.

Example, EJ recently @134.55 intersected with the 1440sma ( thats the average value of the last day ), Short near with a tight SL would of just netter you 30+ pips already.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #5
  • Quote
  • Nov 11, 2009 8:33pm Nov 11, 2009 8:33pm
Quoting kingfisher
I have been trading successfully using sma and it works ! Thats the simplest technical tool.

I want to know how about other technical tools- MACD, fib. Do they also give clear trade set up signals?
If you have a successful system, why mess with it? Most people spend years searching for something bouncing from one idea to another.

Why do you think something more complex will be more successful? Simplicity is a beautiful thing if it is providing the results you want.
  • #6
  • Quote
  • Nov 11, 2009 9:47pm Nov 11, 2009 9:47pm
Quoting Turveyd
MACD is just the difference between 2 sma's you realise.
Not true!
  • #7
  • Quote
  • Nov 12, 2009 3:37am Nov 12, 2009 3:37am
Quoting philmcgrew
Not true!

And there is a average value of this value, which is totally pointless.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #8
  • Quote
  • Nov 12, 2009 4:09am Nov 12, 2009 4:09am
Quoting Turveyd
And there is a average value of this value, which is totally pointless.
MACD doesn't even use SMAs.
  • #9
  • Quote
  • Nov 12, 2009 4:15am Nov 12, 2009 4:15am
Quoting philmcgrew
MACD doesn't even use SMAs.
Okay EMA's.

Plot a 5ema and 10ema on a chart, setup a MACD 5,3 and see how similar the macd looks to the difference between the 2.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #10
  • Quote
  • Nov 13, 2009 2:51am Nov 13, 2009 2:51am
Quoting Turveyd
SMA is the ONLY thing that works.
i think you mean that a sma is the only thing that works for YOU. i dont even use them, but somehow i can trade. i must be a psychic then.
  • #11
  • Quote
  • Nov 13, 2009 7:47am Nov 13, 2009 7:47am
Turveyd could you please answer why the EMA 55,200 and SMA 600 1440 are significant? So many use different EMA SMA lines i am very curious the logic behind picking specific numbers?
  • #12
  • Quote
  • Nov 13, 2009 9:51pm Nov 13, 2009 9:51pm
Quoting almann400
Turveyd could you please answer why the EMA 55,200 and SMA 600 1440 are significant? So many use different EMA SMA lines i am very curious the logic behind picking specific numbers?
Please don't fall into this trap where you start thinking that moving averages provide some kind of support and resistance. It's just simple math and they have no predictive powers.

55 is a fib number
200 is the average number of annual trading days in the stock market
600 is the number of calories in a big mac
1440 is the number of minutes in a day
  • #13
  • Quote
  • Nov 13, 2009 10:19pm Nov 13, 2009 10:19pm
MACD doesn't even use SMAs.

Some indicators do allow you to specify the MA mode. Most MACDs are an average of the difference between 2 EMAs tho. Hence the lag. Depending on how the pair is behaving that can be a problem or not.

Please don't fall into this trap where you start thinking that moving averages provide some kind of support and resistance. It's just simple math and they have no predictive powers.

The "draw enough random lines" theory. The human brain does tend to see things that aren't there. Still, there are a few MAs that have some value due to the number of traders using them. Mostly it's just a convenient way of filtering signals, for better or worse. I like the 200 EMA, it's usually a decent trend line for pairs that are trending.
  • #14
  • Quote
  • Nov 15, 2009 3:21am Nov 15, 2009 3:21am
360 degrees in a circle
180 half of that
90 half (fib-freaks say 89 is the magic number, Gann says 90)
45
22.5
11
5
sqrt(5) 2.24
2
sqrt(2) 1.41
1.41 worth of 1 euro
;=)
  • #15
  • Quote
  • Nov 15, 2009 3:48am Nov 15, 2009 3:48am
In other words if you pull a large enough list of numbers out of thin air you shouldn't be surprised when some of them randomly match up to trading.
  • #16
  • Quote
  • Nov 15, 2009 6:07am Nov 15, 2009 6:07am
Quoting Rabid
Some indicators do allow you to specify the MA mode. Most MACDs are an average of the difference between 2 EMAs tho. Hence the lag. Depending on how the pair is behaving that can be a problem or not.



The "draw enough random lines" theory. The human brain does tend to see things that aren't there. Still, there are a few MAs that have some value due to the number of traders using them. Mostly it's just a convenient way of filtering signals, for better or worse. I like the 200 EMA, it's usually a decent trend line for pairs that are trending.

Thats why people think Fib lines and other madness work because 20% of the time by coincidence they work and the other 80% well we'll just forget about them as it's against what we are convincing ourselves will work.

I just don't like lying to myself.

M1 200ema just works and works and works, it leaves everything else so far behind it reliability wise there just isn't any point in using anything else and it's easy to see and read and not that hard to use live.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #17
  • Quote
  • Nov 15, 2009 6:34am Nov 15, 2009 6:34am
Quoting Turveyd
I just don't like lying to myself.

M1 200ema just works and works and works....
Oh, the irony!
  • #18
  • Quote
  • Nov 15, 2009 7:11am Nov 15, 2009 7:11am
Quoting philmcgrew
Oh, the irony!

If your going to have a dig, atleast have the decency to expand on it!!



No time for lies here, either to myself or others, no time for delusions to!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #19
  • Quote
  • Sep 12, 2021 2:06am Sep 12, 2021 2:06am
Quoting Turveyd
SMA is the ONLY thing that works. Try M1 :- 55ema 200ema 600sma 1440sma You'll be amazed!! MACD is just the difference between 2 sma's you realise.
Hi
Please explain the relationship between the average of 200 and 1440? How can the signal be received?
  • #20
  • Quote
  • Sep 12, 2021 3:36am Sep 12, 2021 3:36am
Quoting h.bagheri6
{quote} Hi Please explain the relationship between the average of 200 and 1440? How can the signal be received?
Do you realize,that you're asking 12 years old thread?
Whether you think you can, or you think you can't,you're right. H.F.
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