19. How toTrade Moving Averages Like a Pro Part 2

[toddelong]

I am confident that adding levels of additional technical analysis to this strategy should improve the ROI, but I have been hard pressed to find an example where trading moving averages alone will result in "losing your shirt.”

QUESTION: Could you please provide real world example where employing this strategy alone, in fact, lost money.

Oh, and BTW, I love your videos. They have been a great help to me and my investment club. I hope you still take the time to respond to posts.

[toddelong]

In reading years of posts below, I have a nagging question There seems to be a general consensus that moving averages alone would not be an effective trading strategy. I took devulsky's challenge and picked 10 random stocks and back tested 12 months using a 50-day simple moving average "Buy/(close short position) when price breaks above and sell/(& short) when it crosses below" the moving average and provided you have chosen a stock with price volatility, this appears to make money.

[emrepl]

i cant use ema without rsi,stochastic and macd

[SesyyyTravisaa303]

hìhí_ì_feél_sõ_lØÑÈly_tøÐÁý

[eyeonwashparish]

Subscribed. Thanks for these video.  I'm new and in education phase right now and noticing Moving Averages can say a LOT.

[freeSCALPINGindicato]

i got brilliant free SCALPING indicator a lot better than MA cross overs...

[rainatrade11]

hello sir i like ur video i m a new trader , i want to know which moving average is more eficint in intraday hourly , daily charts

[thesexyfinancialshow]

check out gafnn site for traders created by a playboy model from women of wall street ,she's always on it chatting if you need advice!really cool site google gafnn

[gengarjetty]

dave = selfless saint.

[tempemonkey2323]

Trade stocks you forex pussies!!!!

[PBTVonline]

u are the man!

[WDTripps]

compliments elliot wave theory as well

[FreeFOREXautoROBOT]

Thank you very much..Nice video.

There is one 100% Free EA...Great Results

[KEGiven]

hey dave im a new paper trader, and im enjoying the videos alot. i was wondering if you could explain to me how the market works after hours

[KEGiven]

hey dave im a new paper trader, and im enjoying the videos alot. i was wondering if you could explain to me how the market works after hours

[FreeFOREXautoROBOT]

it seems interesting, but I like Forex robot

[laton2010]

stay away from forex it is the biggest scam business in the world. the 5% winners are the market seller in agreements with brokers. stay way from this devil business. go to another markets

[ramiraramira]

usless video about avg. usless. no REAL advice on how to avoid falls breakout.. nothing.

[kaushik101089]

thanks a lot dave

where could i get the charts with day moving average??????????

is ther any software??

let me know it

[nvedia]

you can get it in google finance, just click on technicals

[Sconz32]

Just found these videos and are ripping through them and learning a lot. Thanks for taking the time to put them up. They are excellent.

[hewauk]

you are a star dave

[NIGH8R88]

you really are a n00b

[KevinTheNoobie]

Wow, your comeback is 4 months late.

[NIGH8R88]

Wow, your face is 4 months late.

[KevinTheNoobie]

LOLz

[NIGH8R88]

LULz

[ptpatil]

Been a trader for a few years, these are good videos, however I recommend delving deeper into these indicators before you assume you know what they're all about.

Also for anyone who really wants to be a trader, take a look at Elder Alexander's books and products, extremely well written and worth their weight in gold.

[antlerglazed]

edicccc,

Your an idiot. I make my house payment taking money from people like you out of the market!

Great videos Dave, keep up the good work!

Thanks.

[Humble71918]

Hello there,

I am a newbie on this Forex trading and lost 600 dollars in two weeks as I am not quite familiar with all the terms and strategies, based on data happened this week, and being the fact that I am losing 40 dollars WITH BUYING THE BASE CURRENCY in pair USD/JPY, what would you recommend me to do? stay or leave?

[InformedTrades]

For traders who are new to the market and have not yet developed a strategy they are comfortable with I think most would agree that the best thing to do is papertrade and then to start with a small account and build up when the trader becomes more confident in their skills and strategy. Hope that helps. Best Regards, Dave

[fonzi0was0cool]

@InformedTrades

hi david

can you tell me, on your chart example in the video, what type of macd did you use, and what were the settings ?

is there any other way of identifying a ranging market BEFORE it happens ?

thanks.

you are great.....

[GonG108]

@Humble71918 LOL , the only answer should be GET OUT or start to think over what you are going to tell your wife , lol

[shaunshaun88]

moving averages work very well with support and resistance lines and also watch your money management...using a top-down approach, we can fetch good pips with high win/loss ratio and low risk.......just be careful with your trading

[wojtek0000]

excellent teacher. covers all the bases clearly and concisely.

[InformedTrades]

Thanks for the comment and for watching I am glad you like the video.  Best Regards, Dave

[wojtek0000]

how is it a 50-day moving average when its a monthly chart?

[InformedTrades]

Hi, The chart of Goldman is a daily chart it is just zoomed out which is why you see the months along the bottom. Best Regards, Dave

[countingdolls]

might i also mention, devulsky, that this guys been ding a great job .......... ive been folwing his videos for bit ............ hes always been very polite with peoples queries, et al ............ so maybe u can go easy on people like that

[devulsky]

This trading estrategy is pure shit.

Forget it. Try to simulate this before use real money.

[PFCAhammed]

dont be rude these tutorials are very useful and well structured. if you have a criticism make it constructive.

[devulsky]

You are right.

I just want to be clear and enfatic.

[visulube]

Hi

This strategy used by itself is poor, as you mention, but Dave clearly states that it should be used in conjunction with other indicators, then it becomes useful.

Cheers.

[devulsky]

"Use with other indicator"

Very easy to teach TA.

Use something in conjunction with other something.

If he does not know or did not say which indicator, how he can advise it to be used?

[InformedTrades]

Hi Devulsky, In case it is not clear from my videos, I am not seeking to "advise" people on anything, but simply to provide the basics of technical analysis (which can be found in a variety of other places) for free by video. It is a trader's responsibility to develop their own strategies, and those who rely on the advice of others instead of building their own strategy, will from my experience almost always lose money over the long term. Best Regards, Dave

[devulsky]

What you need to say is:

If did you use moving averages you all will lose money. Why? Because moving averages do not work.

If you don`t believe try to backtest this.

[InformedTrades]

no I really don't need to say anything other than what I have said as everyone else with the exception of you seems to understand that I am not telling people to trade this as a standalone strategy.

[devulsky]

Another indicator? Which?

I have tested this for years.

I know whati`m talking.

Never use moving averages, this is a stupid estrategy.

[Fullperson]

4:00, not something you want to use by yourself, but in conjunction

[visulube]

Working now, probably my computer !!

Cheers

[InformedTrades]

no worries let me know if you have any other issues. Best Regards, Dave

[devulsky]

This trading estrategy is pure shit.

Forget it. Try to simulate this before use real money.

[countingdolls]

i know im not a part of this but relax man ... good for if u know stuff .......theres plenty of others like me who dont ............so this indeed is a nice way to begin

(did u lose a fortune trading this way??)

[visulube]

Hi Dave

It says video no longer available.

Could you look into it please ?

[mclim888]

May I know which moving average is the most effective to use i.e. simple, expodential, macd and etc. How about the number of days to be determined in the formula?

Thanks for the information.

[InformedTrades]

Hi Mclim888, This really depends on the financial instrument you are trading and what your goal is from looking at the moving average. This being said some of the more popular moving averages are 20, 40, 50, 100 and 200. Most traders I know use the Simple moving average. Best Regards, Dave

[mclim888]

Thanks for the feedback

[kinouye]

i don't understand how your choosing a certain moving average for a specific time frame...say if i want to trade on a week by week basis, what would be best?...or month to month? what moving average would be ideal?

[InformedTrades]

Hi Kinouye, That really depends on the market you are trading and what you are trying to determine about the market. If you would like more input on this feel free to post in the free forums over at InformedTrades where the comment space is not limited. Best Regards, Dave

[Skylar541]

Wow, very thorough. I am new at this. I went to a conference and the speaker briefly spoke about this but I can see how powerful this tool is. I don't have much risk capitol, but I do have some. I will be researching and investing as I learn more. Thanks for the help.

[InformedTrades]

Hey Skylar541, My pleasure am glad you like the video. If you visit my channel you will see there are tons of other videos there ordered by number as well as tons of other free trading courses on InformedTrades. I don't give trading advice but from one trader to another its always smart to start small and work your way up after you prove yourself over time.

Best Regards,

Dave

[aasyraf]

This is great!

I finally know how to use the Moving Averages Function in the trading platform!

cheers

[InformedTrades]

glad to hear you are progressing aasyraf. Best Regards, Dave

[venkstaar]

Hey Dave, Again very insightful indeed. Always used to take the Moving Avg lines for granted. But i see they have lots of utility when supplemented with other indicators. I just wanted to know which are two most popular Long Period and Short Period averages for Currencies ? I wanted to use them for crossover trades. Appreciate your comments. - Venky

[InformedTrades]

thanks for the comment. The answer to this really depends on the currency that you are trading and the time frame that you are trading on. In order to get a good idea of what is going to work best for which currencies and which timeframes I would suggest trying out several combinations and seeing how well they have worked by eyeballing them on historical charts and then go from there. Some popular combinations where you can start are 200 and 50, 40 and 20, 50 and 20.

[InformedTrades]

There is also explanations of several crossover strategies in the link I have placed in the description. Best Regards, Dave

[kidmercury]

this was a great explanation. thanks.

[InformedTrades]

my pleasure thank you for the comment. Dave