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Has been interesting to read how other people have been using MA....

I occasionally use 30SMA to find tradable setups.

I treat MA's as a resistance level and hope that it will bounce off it. Stop loss is usually set at a lower low (for longs) or a higher high (for shorts). Take profit level will need to be a level where R:R is atleast 1:1 (ideally 1:2 would be best)

The way I interpret this is that once the MA starts trending, there's a good chance that any retrace will be contained by the MA and send the price right back in the direction of the trend.

I've found 30SMA to be a nice number, but it really depends on the instrument you are trading as one set of MA will not suit another instrument.

I also incorporate EW to see if the wave pattern has exhausted itself and is ready for a retrace...

Below is an example of 1hr AUD/USD with 30SMA... a few winners and some losers in there, but with good SL, you should still be ahead over this timeframe.

<blockquote data-quote="korrupt_1" data-source="post: 446259" data-attributes="member: 11461">Has been interesting to read how other people have been using MA....I occasionally use 30SMA to find tradable setups.I treat MA&#039;s as a resistance level and hope that it will bounce off it. Stop loss is usually set at a lower low (for longs) or a higher high (for shorts). Take profit level will need to be a level where R:R is atleast 1:1 (ideally 1:2 would be best)The way I interpret this is that once the MA starts trending, there&#039;s a good chance that any retrace will be contained by the MA and send the price right back in the direction of the trend.I&#039;ve found 30SMA to be a nice number, but it really depends on the instrument you are trading as one set of MA will not suit another instrument.I also incorporate EW to see if the wave pattern has exhausted itself and is ready for a retrace...Below is an example of 1hr AUD/USD with 30SMA... a few winners and some losers in there, but with good SL, you should still be ahead over this timeframe.</blockquote>

[QUOTE="korrupt_1, post: 446259, member: 11461"] Has been interesting to read how other people have been using MA.... I occasionally use 30SMA to find tradable setups. I treat MA's as a resistance level and hope that it will bounce off it. Stop loss is usually set at a lower low (for longs) or a higher high (for shorts). Take profit level will need to be a level where R:R is atleast 1:1 (ideally 1:2 would be best) The way I interpret this is that once the MA starts trending, there's a good chance that any retrace will be contained by the MA and send the price right back in the direction of the trend. I've found 30SMA to be a nice number, but it really depends on the instrument you are trading as one set of MA will not suit another instrument. I also incorporate EW to see if the wave pattern has exhausted itself and is ready for a retrace... Below is an example of 1hr AUD/USD with 30SMA... a few winners and some losers in there, but with good SL, you should still be ahead over this timeframe. [/QUOTE]

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