Exponential Moving Average (EMA) : Profitable Settings

Moving average settings for day trading

Moving average settings for day trading


If you get anything out of this article, do not make the same mistake I did with years of worthless analysis. You will make some traction, but it 8767 s a far better use of your time to zone in on yourself and how you perceive the market.

What Is The Best Moving Average And The Best Indicator

So, you may be asking yourself, 8775 Well when will the EMA get me out faster? 8776 . The answer to that question is when a stock goes parabolic. The EMA will stop you out first because a sharp reversal in a parabolic stock will not have the lengthy bottoming formation as depicted in the last chart example.

How To Use Moving Averages - Moving Average Trading 101

Let 8767 s look when a sell action is triggered. In this example, a sell action was triggered when the stock gapped down on 9/65/7568.

The Perfect Moving Averages for Day Trading

In the below charting example of Apple from 9/9/7568, the 65-period SMA crossed above the 75-period SMA.  You will notice that the stock had a nice intraday run from $979 up to $.

3Hidden Secrets of the Moving Average | Trading Strategy

You must find some way of just charging through all of that and letting the security do the hard work for you. We have been conditioned our entire lives to always work hard towards something.

Top 3 Simple Moving Average Trading Strategies

So, on some Level I was training my subconscious to expect these types of gains on every trade.  This sort of thinking led to a lot of frustration and countless hours of analysis.

5 -- SMA -- For the hyper trader.  The shorter the SMA, the more signals you will receive when trading.  The best way to use a 5-SMA is as a trade trigger in conjunction with a longer SMA period.

Once you have made your decisions, don’t change it regardless of how much money you lose or how bad you think the moving average is.

Moving averages are not the holy grail of trading. If used properly, moving averages can help you gauge when to exit a trade and help limit your risk.

While we are all familiar with the indicator, why do you think it 8767 s so difficult to trade with simple moving averages? If you do a quick Google search, you will likely find dozens of day trading strategies , but how do we know which one will work?


Leave a comment