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Moving Averages

Discussion in 'Beginners Bootcamp' started by Akintunde, Aug 3, 2008.

  1. Akintunde

    Akintunde Recruit

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    what parameters do i use for my MA?, How do i use a RSI?
     
  2. rpaco

    rpaco Sergeant

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    I very VERY strongly recommend that you go away and work through Babypips.com school section.
    here: Forex Training & Education: Beginner Foreign Exchange Currency Trading It is very good and easy to understand.

    There are many different ways of using MAs which often from part of commercial or copyrighted trading systems. They are often used in pairs and long MAs are sometimes used to indicate or in some cases define, the trend.

    RSI is often used on 21 to show overbought or oversold conditions. Please read the definitions in the help file of your MT4 But again please read Babypips first!!!!! But traders hav eall sorts of different systems.

    Do not rush to loose your money as 95% of traders do. (That's loose, but not necessarily rush.) Learn first how to loose it properly. Read reviews of any brokers or trading systems you may be tempted by before you trade real money.
     
  3. rpaco

    rpaco Sergeant

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  4. emmajabah

    emmajabah Private

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    Pls go for more badic education in forex trading before going Live
     
  5. Cyclon

    Cyclon Company Representative

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    What they are tellin ya is

    Hi Akintunde,

    What they are tellin ya is that what you've kind of done is ask to speak to the Great and Powerful Oz. :mad: Sort of like if you were an intern at the capitol who shows up on the floor of the senate and asks, "What is a Bill?". The senators wouldn't mind helping but the question shows that a foundation is not there yet which needs to be in order to receive the answer in a useful way.

    (And the real answer is not known)

    8- )

    Cheers,
    Cyclon
     
  6. rpaco

    rpaco Sergeant

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    It's a short on William!
     
  7. Millionaire

    Millionaire Recruit

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    Hey guys what happend to you, the man is asking for best parameter for MA and RSI and every one is asking him to go away and learn !! he asked this question because he wants to learn.

    Dear Akin,
    MAs has no specific parameters, if you're asking to watch entries on crossover so some traders use the below config:
    10, 25, 50
    10, 20, 30
    it's differ from one to another, regarding crossover always wait for the fast to cross the two slow lines, not only one.

    Regarding RSI 70 is overbought and 30 is oversold, some traders wait for the line to touch 20 and head north to cross 30 to enter long a trade.

    Regards,
    Millionaire
     
  8. rpaco

    rpaco Sergeant

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    Well Millionaire you have your opinion, but I still think our man would be better served in the long run to do what I suggested. As I recently wrote in another thread here, there are many ways of using MAs Commonly either as trend indicators with 3 pairs or as major moving support or resistance levels together with long Bollinger as in a certain well known system. (whose forum I am banned from since I asked fro my money back)

    Ref RSI, I always set levels at 20 and 80 but remember to check for both crossing the 80 or 20 line and actual direction and slope. The period parameter to use must be found by experiment on the part of the wave you are on, changing the value until you get coincidence of peaks with nearest trend change. Most people just use the default value which may work for you.

    Coming back to MAs, you will find a lot of them used in a sophisticated way in cyclon's STAR system which I will not describe least he gets upset, but you would be well advised to study Elliot waves and socionomics if you want to know what will happen next.

    Remember it's not easy and 95% of traders loose money. Some will appear her with fantastic systems which cannot loose, they boldly post their daily trades, but most of them disappear quietly. Cyclon blotted his copy book by posting trades from a different sub-system he was developing instead of those based on his proper system, thus giving a false bad impression. But his system does work IF you follow the rules. Adhering absolutely to the rules and acting at the right time is in my opinion, the hardest part of any trading system.

    I would also strongly recommend that you paper trade only, in a demo account, for at least 6 months, then if by the end of that you have not been wiped out, probably twice, you may be ready. 5% are successful and a lot of those are proffessionals with access to special data.
     
    #8 rpaco, Nov 2, 2008
    Last edited: Nov 2, 2008
  9. Kinzel

    Kinzel Recruit

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    You can try fibonacci numbers in yours MA's.

    5, 8, 13, 21...
     

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