Chart Sensitivity - Settings

[invu2]

Im a Newbie looking at short term trading on the GBP & EUR against the USD. Using 1,5 & 10 & 15 charts. I also include MACD, DMI and RSI as key indicators. Do I use default platform settings for all.....or are there any hard and fast rules I must follow. Any advice..?

[ajhardesty]

This thread sounds similar to what you are looking for:

http://www.moneytec.com/forums/showthread.php?t=18818

[invu2]

Thanks for the reply, havn't looked yet but does it capture any other time intervals..?

[invu2]

aj .. wonder if you have anymore good sugestions for chart settings longer term that is. I have adopted those settings to my trading platform and aim to try friday..in demo of course. Ill keep you posted..!

[ajhardesty]

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.