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Old 16-02-2006, 19:48   #5
ajhardesty
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Re: Chart Sensitivity - Settings

Quote:
Originally Posted by invu2
aj .. wonder if you have anymore good sugestions for chart settings longer term that is...!
I really like moving averages and constantly experiment with various period settings using Fibonacci numbers (5,8,13,21,34,55,89.144) for SMA, EMA, & WMA. Then explore them in different timeframes, sometimes all the way out to a daily chart for 2 years. That gives a good foundation for using MAs and also lets you see how they interact with price and price patterns.

As a rule of thumb, use larger period numbers for longer timeframes, but there is no magic here and no single best setting. To start, maybe try 5 & 21 on small timeframes and 34 & 89 on longer ones. Experiment until the MAs are working with price to give you good entry and exit signals. Then go back in time (backtest) to see if they really work consistently.
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