Which Moving Average on a 5min Chart?

[Keys 10]

Which moving average works best day trading on a 5 minute chart?

[Soultrader 12]

I dont use moving averages on my intraday charts but am careful for the 200 MA on the 5minute chart. This can act as support or resistance mainly because other traders watch this.

[Stockaddict 10]

I have found the 20, 50, and 200 to be useful. As always, it is traders preference.

[namstrader 10]

I have found that the 34 ema is very trustworthy as a pivot to fade. Woodies group uses this moving average with the cci.

[carter 10]

  namstrader said:

I have found that the 34 ema is very trustworthy as a pivot to fade. Woodies group uses this moving average with the cci.

 

Hi namstrader,

 

Do you trade as part of Woodies group? I am familiar with Woodie from the cci. What does Woodie mainly trade and in what time frame? Thanks

 

Carter

[namstrader 10]

I spent about 6 months watching and learning from Woodies room. I got tired of the politics. He looks at the 5 minute primarily and also his claim is "who needs those stick'in prices" and trades with the cci only, and his setups include: zero line reject, ghost patterns, shamus, plateaus, etc.

[Soultrader 12]

Interesting.... although I can not agree with his comment of "who needs those stick'in prices". I actually landed on his site a few months back and read the free file or pdf he offers. Learned all about the CCI trading patterns but never bothered using them or checking it out.

 

He must be in love with the CCI to hold such confidence in it. Did you find trading purely on the CCI profitable?

[carter 10]

Haven't seen his track record but I will never place an indicator before price. He seems to have conviced alot of novice traders in using the CCI. This may evetually backfire when the indicator no longer does what its supposed to.

[Keys 10]

Is Wooides room free? I am interested in learning some of his methods.

[namstrader 10]

I myself eventually became disillusioned with so many different setups, with setups that were for prior setups that failed. I did become comfortable using the 34 ema as a fade when prices are not flat and there is angled pricing. I have implemented the cci and rsi with my own adaptations, as my lagging indicators. I use trendlines on the cci and rsi, when I see a 3 point trendline for both, and also a 3 point trendline on the ER ticks (which leads) I am prepared to a take position. Another setup I like is when a trendline of 3 or 4 points on the cci and rsi is broken, a explosive reverse has been observed to occur. Also when the cci stays below 100, or for some they use the zero line, or trendline break, a trade is exited when broken.

[Soultrader 12]

I rarely find the RSI useful. The only setup I use the RSI is when there is price and RSI divergence at a pivot. The way you expalin CCI reminds me of TICK's and TICk trendline/channel breaks.

 

namstrader, is the 5min chart the shortest timeframe you use? Personally I found it to be too large of a timeframe to trade intraday. Probably because we have different styles.

[namstrader 10]

Soultrader,

 

I look at the 1 3 5 minute charts simultaneously, while also being cognizant of what the 240 60 30 15 minute charts are all saying. It is amazing how parallel channels complete with such symmetry on these longer time frames. And therefore I am constantly drawing trendlines on my charts throughout the intraday. I also watch market internals and now, with Market Profile with Daily Pivots, I seem to be more aware of the playing field and I have reference points to play off of now. I am still not profitable with consistency but I know I will be there soon. Watching and listening to you Soultrader, is taking me further toward this goal.

[Soultrader 12]

Thank you namstrader. I also plan to learn from various traders like yourself on any area I can improve. I believe we all have our strengths and weaknesses and is important we learn to improve our weaknesses.

 

For example, I mainly watch a 233 TICK chart, 30 min Market Profile chart, and a daily chart. I want to improve my analysis using longer time frames like the 60 and 240. I'm sure I have alot I can learn from you too namstrader.

[fxxx 10]

  namstrader said:

I myself eventually became disillusioned with so many different setups, with setups that were for prior setups that failed. I did become comfortable using the 34 ema as a fade when prices are not flat and there is angled pricing. I have implemented the cci and rsi with my own adaptations, as my lagging indicators. I use trendlines on the cci and rsi, when I see a 3 point trendline for both, and also a 3 point trendline on the ER ticks (which leads) I am prepared to a take position. Another setup I like is when a trendline of 3 or 4 points on the cci and rsi is broken, a explosive reverse has been observed to occur. Also when the cci stays below 100, or for some they use the zero line, or trendline break, a trade is exited when broken.

 

it's an old thread, but who can explain or show on the chart what Namstrader ment by 3(4) point cci/rsi trendline

thank you

[namstrader 10]

The upper indicator is the CCI and the lower one is the RSI. When you see these trendline breaks of 4 waves on the RSI, is occasionally explosive in a reversed trend to follow. Basically it is a breakout from a channel and sometimes is more visual to me with the CCI and RSI with their observed patterns they show often.

 

Also when I notice a 3 point line on either the CCI or RSI, this has shown a move is going to occur from the long side or short side.

 

I like to watch for divergences also with price at pivotal areas of support and resistance.

 

I played with watching the CCI and RSI for several years and I use to take signals exclusively from them. I no longer do this, instead it is just another tool that I have for confirmation or filter.

[bertg 10]

nams,

 

I assume you use 14, 6 for CCI. What settings do you use for RSI?

 

Thanks,

Bert

[namstrader 10]

Yes I do just like woodie.